NECC: Making the North East a success
DECEMBER 2013 - JANUARY 2014
Tea for you Ringtons is brewing up for growth
BRAVE NEW WORLDS
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MODERN MANORS
How to make a stately home earn its keep
The genesis of virtual realities
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FAMILY AFFAIR Nasser Din: Business is in the blood
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Welcome...
WELCOME TO THE LATEST EDITION OF CONTACT. In the last quarter we’ve celebrated our members’ achievements at the Tees Valley and the Tyne and Northumberland Annual NECC Dinners. These gala events showcase business accomplishments and it was a real pleasure to hear from speakers including Olympian Steve Cram, Emirates Airlines president Tim Clark, British Chambers of Commerce president Nora Senior and Grand National-winning jockey Bob Champion. The dinners book-ended another well-received President’s Club lunch at Wynyard Hall where Lord Howell (he of the “desolate and uninhabited” comments regarding the region in August) described the region as the “UK’s energy hub” and urged businesses to locate here. Sitting down to pen a speech for one of these
NECC president Dave Laws looks back on a positive year for the region
events provided the opportunity to look back on North East accomplishments during 2013. My election to NECC president in the summer was quickly followed by the most positive NECC Quarterly Economic Survey since 2007. This revealed that regional business is recruiting more, investing more and enjoying more sales and orders than at any time since the recession began. These key indicators demonstrate that business optimism is returning and firms are picking up the slack from public sector cuts. The findings were backed up with another positive survey at the beginning of November. We remain the only English region with a positive balance of payments, on course to meet the chancellor’s challenge to double overseas trade by 2020. We boast a thriving manufacturing and engineering sector, a service industry that has seen significant growth throughout 2013, and a headstart on the rest of the UK in renewable energy, offshore wind and electric vehicle development. NECC has lobbied the Government to invest in infrastructure, to reduce red tape and back the North East to deliver more; aims detailed in NECC’s Manifesto for Growth 2013 (see p20). We will also continue to exert pressure to reduce Air Passenger Duty at regional airports, improve links to our ports and upgrade sections of the East Coast Mainline. No doubt, 2014 will offer fresh challenges. We stand ready to meet them. Dave Laws, NECC President
EDITOR Jane Pikett jane@offstonepublishing.co.uk EDITORIAL TEAM Dean Bailey Alastair Gilmour Liz Hands Owen McAteer Paul Robertson Contact is the magazine for NECC members. News and press releases should be sent to submissions@necc.co.uk ADVERTISING Contact our commercial team 01661 844115 sales@offstonepublishing.co.uk PHOTOGRAPHY Kevin Gibson www.kgphotography.co.uk Nicky Rogerson www.nrphotography.co.uk Peter Skelton www.photo-psp.co.uk
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WHAT THEY SAY THIS ISSUE... Offstone Publishing, Unit 1, Bearl Farm, Stocksfield, Northumberland, NE43 7AJ 01661 844 115 enquiries@offstonepublishing.co.uk
When you have finished with this magazine please recycle it
Kirsty Henshaw
Jon Malton
Cumron Ashitiani
“The Government needs to invest more in entrepreneurs; the people who are going to rekindle the economy. It could be done in the same way as student loans. The same sort of loan should be readily available to business owners so that they can grow their company.”
“We’ve done well because we’ve focused on what we’re good at. We’ve never spent more on developing new product and we’ve done everything possible to improve the customer offering. That’s what has got Ringtons through two world wars and umpteen recessions.”
“I rounded up a few of the best creative people in the business and we decamped to the Gold Medal where I laid out my plans for a creative service focusing on what we all did really well as artists. Everyone was enthusiastic...but most importantly everyone I had approached was in.”
Kirsty’s
Ringtons
Atomhawk Design
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DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 3
Durham & Wearside Annual Dinner
18:30-00:00 - Thursday March 27, 2014 Stadium of Light, Sunderland A warm welcome… Join us for one of the key events in the North East business calendar - the Durham & Wearside Annual Dinner; a prestigious evening celebrating Durham & Wearside business. Attendance at NECC Dinners delivers a strong statement, displaying your continued support of the North East business community; it is the perfect opportunity to network, mingle and entertain at the drinks and canapé reception and after official proceedings close. NECC prides itself on delivering an engaging and entertaining programme of prestigious, celebratory Dinners across the North East each year.
Your host: Jeff Brown, BBC Look North Your After Dinner Speaker: Kevin Ball, Senior Professional Development Coach, SAFC
Registration and fees:
Tables of ten - £650 plus VAT Individual bookings - £65 plus VAT Non-member: £90 plus VAT per individual booking; £900 plus VAT per table. An Early Bird booking discount of 20% for President’s Club and 10% for all other membership grades applies for registrations received before 5.00pm on Friday, January 10, 2014. Early Bird booking discount is not available to non-members. Individual bookings can be made via card payments on this website, for full table bookings, invoicing and President’s Club registrations, please email events@necc.co.uk or telephone 0300 030 33662.
Contents
32
From humble entrepreneurial beginnings with a bus load of chickens, to the challenge of making a stately home pay, all business life and more is here
Plus 10 WINNING FORMULA
C&A Pumps wins new contracts
11 NECC APP
NECC launches its first news app
12 TECH WIZARDRY High tech ads hit the North East high street
14 SHIPS AHOY Port of Tyne is full steam ahead
16 IRISH FLIES
A new flight to Dublin from Newcastle International
17 MINI WIN
Sunderland-based Gestamp scoops a new deal with Mini
Features
40 FAB FIVE
6 DRIVING SEAT
54 HI! TECH
Happy Christmas!
On track with Angus Marshall
Flying high
20 IN FOCUS
66 LAST WORD
2013 under the microscope
24 NEWS OF THE BREWS Nasser Din, above, on the family heritage which made him the entrepreneur he is today
Taking family firm Ringtons into the 21st Century
26 TO THE MANOR BORN Making a stately home pay
With Kirsty Henshaw
24
28
28 PLAY TO WIN
Gamesmaker Atomhawk with the world - real and virtual - at its feet
32 LIKE FATHER, LIKE SON
How Nasser Din learned his entrepreneurial skills from his father
44 IN THE MONEY
A special focus on access to finance in association with HSBC
50 NEW AGE PENSIONERS The one-stop guide to the new legislation on workplace pensions
56 SHIP-SHAPE Lunch aboard ship with DFDS
passenger director Max Foster
Clockwise from above, Jon Malton of Ringtons, design work by Atomhawk, and the Last Word from Kirsty Henshaw
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DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 5
DRIVING DRIVINGSEAT SEAT
There’s just something about Lotus 6 / www.necontact.co.uk / CONTACT / DEC 2013 - JAN 2014
Fast, forensic and fun
Angus Marshall, director of forensics firm n-gate, shares his passion for British sports cars with Dean Bailey
A
ngus Marshall is one of the leading digital forensic scientists in the country. His North Yorkshire-based firm n-gate analyses evidence for police forces, law firms and trading standards offices UK-wide. It has supported the Serious Organised Crime Agency in high-profile cases and has provided best-selling crime author Val McDermid with technical advice. When he’s not in the office, you may find Angus tearing around Croft Circuit in his Westfield sports car or enjoying the scenery from his Lotus Eclat. Q Where does your passion for British cars come from? It started in the 1970s watching the JPS Lotus Formula One cars. There was something special about seeing them on the TV on Saturday and Sunday afternoons. I really got into British cars when my father took early retirement and bought himself a Morgan. I’ve been hooked ever since. Q And for Lotus in particular? Partly I blame the actor Patrick McGoohan. I was always fascinated by The Prisoner TV series and the Lotus Seven. As well as that, I’ve always admired Lotus founder Colin Chapman’s approach to engineering. The Lotus mantra has always been ‘add lightness’; make the thing work with the absolute minimum you can get away with. There’s something about Lotus, that mixture of the glamour of Formula One and the practicality of some of their road cars. Q Talk us through your car history I learned to drive at 17 and acquired my mother’s Fiat 127. From there I went through a succession of ratty old heaps, a couple of Skodas, Austin Montegos then Citroens until it got to the point where my wife said, ‘That Citroen’s had it, why don’t you go and buy that
Lotus you’ve always wanted?’ That was nine years ago. Q Tell us about your car Officially, according to DVLA it is a Lotus Eclat Excel SE. That’s a classic bit of Chapman thinking; to reduce costs he called it the Eclat Excel but in reality it’s a completely different car. It was made in 1990, it has the 2.2 litre Lotus engine - the one they used in the Esprit - so on a good day it has similar performance.The great thing is that it’s a two plus two, front engine grand tourer, so it’s got some space in it and I can use it for work. Q What’s this about you being a leading light in the Lotus Owners’ Club? Excel, Eclat and Elite owners tolerate me looking after the cheque book for them. There are around 250 of them still on the road in the UK and another 200 or so worldwide. We’ve probably got around half of those owners as active members and we’re acquiring more every day. We started an international event this year, which we based around Croft circuit. We were very lucky that Lotus Newcastle sponsored the event. We had a very pleasant day touring around Northumberland, County Durham and North Yorkshire, including a stint on the circuit. Unfortunately, it was a weekend of heavy rain and police closed half the roads because of landslides, but on the Sunday the sun came out and we managed to not break any cars at Croft. That’s the joy of a car like this; it’s good for touring but equally you can do silly things like use it on the track if you want to. Q Do you own any important bits of Lotus history? I’m a great collector of spare parts, which is more a necessity than a hobby. I think my most treasured pieces of memorabilia are copies of the drawings for the Lotus Elite - the predecessor to the Eclat - signed by the designer Oliver Winterbottom. He also signed a copy of the launch photograph with him and Mike Kimberley. Mike has only recently stepped down as chief executive of Lotus. Q Your best driving experience? There are two. One of my proudest moments has to be our first lap at Croft this year. A lot of work by a lot of people went into putting that event together and seeing the cars together on track for the first time was fantastic. My other highlight was the year my wife took me to the Monaco Historic Grand Prix for my birthday. That’s a fantastic weekend because it’s an open paddock, so you can walk round and talk to the drivers and mechanics. We arrived as the circuit was reopened to local traffic so I managed to sneak in a lap. That feeling of going through the tunnel and pressing down a little with my right foot was just incredible. DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 7
INBOX
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THE BALD TRUTH
In a move that brings new meaning to the term ‘mousey hair’, scientists at Durham University have been growing hair on the backs of rodents. The team, from Durham and Columbia universities, used cloned human cells to create hair growth and carried out transplants between layers of skin grafted onto the back of mice, resulting in human hair growth. The team thinks clinical trials will begin in the near future, which could mean a cure for baldness is just a hair’s breadth away.
FRUITS WITH BENEFITS
It seems the old adage of an apple a day keeps the doctor away was right, so long as you opt for the vintage variety. Pharmaceutical and food research specialist Coressence has discovered that old varieties of apple contain unique health-giving properties. The Wilton Centre-based company says substances in the fruit can be used in heart health products, colon cancer therapy and foodstuffs for chronic kidney disease sufferers. Bring on the crumble and custard.
ON THE BALL CURVE APPEAL
Estate, was both overall winner and named Best Landscape Architecture in the North East UK Property Awards. It will now represent the UK in the international final in London, which just goes to show what you can do with £3m, two-anda-half years and 1.5m tonnes of stone, clay and soil.
MAKING WAVES
ALL WE WANT FOR CHRISTMAS…
Her form has inspired controversy and admiration in equal measure, and now the North East’s newest cultural landmark is an award-winner set for the international stage. Northumberlandia, the world’s largest human landform, by the Banks Group and the Blagdon
When we attempt the butterfly swimming stroke, it looks very much like we’re drowning, but artist Michelle Castles has managed to make it look beautiful in a sculpture for the new £16m Haven Point leisure centre in South Shields. Talented Michelle, who specialises in sculptures of the human form, used wire mesh to hand-craft 10 life-size models of butterfly swimmers. The aptly named Wavemaker artwork, which took a year to create, is now suspended from the ceiling above the main reception at Haven Point. Michelle says she was inspired by the ‘symmetry and strength’ of the butterfly. It’s just as well she didn’t model her artwork on our efforts.
8 / www.necontact.co.uk / CONTACT / DEC 2013 - JAN 2014
If Santa’s wondering what to drop down our chimney this year, he might want to have a look at a gift package on offer at Seaham Hall.The hotel has joined forces with the Spey Whisky Distillery to offer a 24-hour package of undiluted luxury. A private helicopter whisks you from Seaham Hall to the Scottish distillery for a vintage whisky tasting before flying back to be welcomed with a glass of Champagne on Seaham Hall’s lawn. You then dine at the Blunos Sea Grill at the hotel before retiring to the penthouse suite. Billed as the gift voucher for the person who has everything, it comes with a £3,499 price tag. We just hope Santa has deep pockets.
The generous folk at Jennings Ford have played Santa early to kit out an U16s footy team in snazzy new strips. Chester-le-Street Town Youth Football Club’s U16s contacted Jennings Ford’s Eslington Park dealership in Gateshead for help when their strip became more threadbare than was decent. The team, which competes in the Russell Foster Youth League, are delighted with Santa’s stylish early delivery and hope their new strips bring them good luck on the pitch, which just goes to show, it pays to ask for what you want. As the lads of Chester-le-Street U16s will tell you, shy bairns get nowt.
ON THE BUSES
Pudsey Bear was supplied with his very own Go North East bus to tour the region raising money for this year’s Children in Need appeal. Britain’s bestloved bear teamed up with BBC weather presenters, setting off from Hexham and travelling around the North East and Cumbria collecting cash for a beary good cause on the way.
IN MY VIEW
In my view
NECC chief executive James Ramsbotham has a lot of reasons to be in high spirits
A
s the year-end approaches I find myself fully immersed in seasonal cheer; not festive spirit just yet, but the cheer that the awards and dinners season brings. This is an important time in the business calendar, providing a welcome opportunity to celebrate accomplishments and catch up with people we haven’t seen for too long. The launch of the 2014 North East Business Awards in September provided an opportunity to reflect on past successes within our own membership, as most of the category winners in 2013 were NECC members. We take these fine regional ambassadors with us to the British Chambers of Commerce Awards on November 28 to compete for national honours, when our NECC party will comprise Elddis Transport, Derwentside Homes, Atomhawk Design, Nortech Solutions, Guardian Marine Technology and Port of Tyne.
All are fantastic champions for regional business and I look forward to updating you on the awards in the next edition of Contact. NECC’s Tyne and Northumberland and Tees Valley Dinners were a great success and I’m looking forward to repeating this at the Wear Dinner at the Stadium of Light in March 2014. Our training teams have also experienced a seasonal upsurge in activity as we look to recruit businesses and apprentices ahead of next year’s intake. There have been significant efforts to encourage the appointment of apprentice dental nurses in North Yorkshire and new accountancy apprenticeships across the region. NECC is also backing the Journal and the Gazette’s Proud to Back Apprenticeships campaign, highlighting the need to recruit more engineering and machining apprentices and showcasing those championing the agenda. With research by Semta suggesting that more than 8,500 skilled people across the North East will be retiring from the engineering sector before 2016, considerable danger is being posed to the
industry as companies reach full capacity in their ability to recruit and deliver. Business must take a proactive role in the development of the future work force in order to tackle these figures. The North East is blazing a trail in the process, manufacturing and engineering sectors, but it is not only the responsibility of large firms and the education sector to equip our future workforce with the requisite skills. The issue must be addressed throughout the business community, and while many large companies are dedicated to apprenticeships and employee development, not enough is being done yet by SMEs in regional supply chains to address serious skills shortages. Around 80% of our engineering firms do not have apprentices or are not engaged in the skills development agenda and it is vital that these companies explore the potential of recruiting apprentices; the motivated learners who can be moulded to meet the needs of individual business. Apprentices are good for your business, and for regional business. Now is the time to invest in them.
“APPRENTICES ARE GOOD FOR YOUR BUSINESS. IT’S TIME TO INVEST IN THEM”
James Ramsbotham, presenting Bryan Bunn of Nortech Solutions with his award (more winners on p60)
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 9
NEWS
NEWS
School asbestos debate A Newcastle-based firm has hosted a major conference about asbestos in schools. The Asbestos in Schools Crisis Debate in Manchester was organised by asbestos management company Lucion. Now in its fourth year, the event attracted industry professionals from across the UK and beyond. Lucion environmental managing director Patrick Morton says the conference aimed to cut through confusion about the handling of asbestos and to set out recent legislation changes.
FLYING HIGH North East Chamber of Commerce (NECC) chiefs are throwing their weight behind ambitious plans to secure the long-term future of Durham Tees Valley Airport (DTVA). The masterplan, set out in a 180-page blueprint, is designed to create thousands of jobs while maximising the potential of the whole DTVA site and repositioning the airport to focus on business routes. There will be new developments on the north and south side of the airport runway, in a bid to position DTVA as a leader in
aviation-related business. A multi-modal logistics centre will be created and the airport terminal itself will be remodelled. While passenger numbers have fallen some 700,000 since 2006, they are forecast to grow to 200,000 by 2020 in line with Government forecasts. NECC chief executive James Ramsbotham describes the masterplan as a “bold and ambitious document that will hopefully
NEWS
Gold standard Muckle LLP has become the first law firm headquartered in the North East to achieve the prestigious Investors in People (IIP) Gold accreditation. The award is ‘scarcely given’ according to Graeme Mills, the IIP specialist who assessed Muckle during September and October. His report says Muckle’s award reflects many years of cultural development achieved through considerable effort and investment. Assessors were impressed by a “respectful challenge” culture where staff were encouraged to question decisions if they felt there was a better solution.
WINNING FORMULA An engineering firm has won significant new contracts in the chemicals industry. C&A Pumps and Engineering, launched in 2012 to install and maintain electrical and mechanical systems, mainly for building firms, local authorities and managed workspaces had set its sights on the chemicals sector and orders are now coming in faster than anticipated as the firm’s reputation grows. The Hartlepool-based company has won a spate of contracts with some of Teesside’s biggest chemical
10 / www.necontact.co.uk / CONTACT / DEC 2013 - JAN 2014
firms, including Huntsman, Ineos, Univar and steel manufacturer SSI. “Traditionally, we were known as a water pump specialist,” says MD Alan Roberts (pictured), “but when the new business was launched we wanted to diversify and the chemicals industry was high on that list.” Roberts re-launched C&A Pumps with his own money after its former parent company decided to close the original business last year. Since moving from employee to employer, he has managed
in association with
secure the airport’s longterm future by maximising its freight potential and considerable land assets.” He adds: “DTVA can play an important role in ensuring the North East remains connected to key business destinations and, while it is disappointing that further investment will not be sought to increase the passenger offer, we are supportive of the masterplan.”
to increase market share within traditional sectors such as housing and building maintenance, and is on target to turn over £1.2m next year. C&A Pumps has just won a contract to provide engineering works at the Bellway Homes’ development at Mowden Park, Darlington, while its training partnership with Teesside University is going from strength to strength. New work within the chemicals sector includes maintenance and training contracts with Univar and the supply and installation of ultra-sonic and radar equipment to detect chemical tank depth levels at Ineos and SSI. Huntsman has bought a range of specialist machinery. Roberts added: “The work with the chemical companies is a bonus because we expected to be concentrating on our core markets in our first years, particularly housing. “To have that work alongside our new contracts in new sectors is very positive for the future of C&A Pumps.”
THERE’S AN APP FOR THAT
Koodoo’s Adam Lee and Sam Whisker with Charlie Nettle (centre)
The North East Chamber of Commerce has launched its first app with the support of one of its members. Web design agency Koodoo Creative has launched Mobile Rockit to cater for growing demand among businesses for apps amid increased levels of mobile web usage. NECC is using this service to provide an NECC News App to keep its members updated on NECC and fellow member news. Charlie Nettle, NECC’s head of marketing says: “Having an app that delivers content and real-time information is key as mobile usage is increasing year on year and we want to be at the forefront of this technology so that we can deliver the best service to our members.” Being a North East business, Mobile Rockit is keen to support
its local community so will be donating 10% of all Mobile Rockit revenues generated from providing apps to fellow NECC members to local charities. Aside from NECC, the firm has already landed several other major clients including volunteer organisation Evolution Darlington, recruitment group Westray and waste management business Harpers. The new online tool allows businesses to build apps and mobile versions of their websites quickly and for a fraction of the price charged by many digital agencies. The app features include social media integration, cloud storage, multiple page listings and a bespoke booking form. To download NECC’s App visit the Apple store or Android store and search for NECC.
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DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 11
NEWS
ADVERTORIAL
DID INTEREST RATE SWAPS AFFECT YOU? WE CAN HELP.
S
ince 2001, thousands of SMEs in the UK were mis-sold Interest rate hedging swaps, a complex financial product. In 2012 the FSA ordered the banks to undertake a large scale review of all IRHP sales to businesses. Currently out of the 30,000 businesses invited to participate only 125 have received an offer of compensation. Whether or not those offers are reasonable and fully compensate the business for their losses is not known. Banks have begun a nationwide rollout to SME’s who could have been affected by the IRHP scandal, which has been highly criticised for a ‘dragging feet’ mentality. There is also a strict criteria for the type of business which is included in the review so many businesses may miss out if they simply wait to be contacted by their bank. Handling IRHP claims Rachel Burns, specialist Lawyer at TLW advises; ‘If you have received an IRHP letter from the bank advising on your time to claim, respond and act swiftly but we would always advise upon instructing a specialist solicitor who specialist lawyer: can help fully calculate not only your direct losses from the mis-sale but also consequential Rachel Burns business losses you may have suffered as a result of the effect the IRHP had on your cash flow.” Burns added; ‘TLW can also help to recover greater losses resulting from the impact of the loan swap; and we can help to negotiate get out clauses of the loan as well as recovering maximum compensation. We can also assist those firms who have not been included in the review and see if they have any entitlement to redress.’ There are strict time limits which can apply to claims so it is important to seek advice as soon as possible.
For more information on Interest Rate Swaps free assessment services or Business litigation from TLW call now on 0191 293 1500 or email info@tlwsolicitors.co.uk. 12 / www.necontact.co.uk / CONTACT / DEC 2013 - JAN 2014
Students from Sunderland University at the Software Centre event
LET’S GET PHYSICAL Students at Sunderland University have won an award for a concept which uses smart technology to scan passersby and target advertising at them based on their physical characteristics. The idea came at a Sunderland Software Centre event which saw students in the city rewarded for their innovative projects designed to help make Sunderland a smarter city. The Smart City event, part of a collaboration with
business and technology services company IBM, showcased the work of students in their second year at Sunderland University’s School of Computing. The winning concept was created by Jack Murrish, Owen Haley, Jonathan Defty and Matthew Dickinson for their project based on the use of intelligent advertising screens with an embedded camera with the ability to scan people and target advertising based on their characteristics.
Alan Kerr, deputy leader of South Tyneside Council
SHOPPING WALL South Tyneside has introduced what is believed to be the country’s first digital shopping wall. An empty shop in King Street, South Shields, has been liveried up to promote four small businesseses, complete with their own QR codes which can be scanned using a smart phone. The idea is for shoppers to scan the codes and be taken to the companies’ in association with
websites, giving them the opportunity to buy directly. Tea and gift shop Mac ‘N Alli, Little Angels cards and gifts and jewellery company The Finishing Touch, along with The Customs House theatre, are the first retailers to be promoted in this unique way. The initiative is a joint venture between South Tyneside Council and Wiltshire-based City Dressing.
NEWS
New perspectives
Roy Sandbach
The charity challenge is launched by Nickie Gott (right) and Julie Calvert
CHARITY CHALLENGE
An innovative charity challenge, which pits North East businesses against each other, is back for another year. Percy Hedley Foundation’s Challenge 500 caught the imagination of businesses including Northumbrian Water, Bond Dickinson, Sitel, Ward Hadaway and Lazy Grace, which all signed up to take part in the inaugural contest. A total of 16 companies raised £50,000 for the Foundation, which supports disabled people and their families. The charity gives each business £500 and they have six months to turn that into as much money as possible. For 2013, the winner was Northumbrian Water which used Challenge 500 as a
development tool for its graduate team, raising a total of £13,000. Barclays Bank has already signed up for the 2014 challenge, launched by Nickie Gott, managing director of She’s Gott It! events company. Julie Calvert, head of marketing, communications and income generation at the Foundation, says: “The beauty of this project is that it is mutually beneficial. The participating companies get a lot out of it in terms of staff development, team building, reputation management and positive PR and we get help to raise the much needed funds to support our work.” Companies can sign up now to take part in the competition, which starts in February, at www.percyhedley.org.uk
DRIVEN TO SUCCEED
Nigel Cook, MD, Elddis
One of the region’s most recognisable haulage firms will be hoping to deliver the goods at a national awards ceremony. Elddis Transport will be competing against companies from across the country for the Sustainability Award at this year’s British Chambers of Commerce Annual Awards. The family-owned business, which also
in association with
specialises in warehousing and distribution, is among a delegation of firms from the North East being championed at the awards by the North East Chamber of Commerce. Elddis Transport will be joined by Derwentside Homes, Atomhawk Design, Nortech Solutions, Guardian Marine Technology and Andrew Moffatt of Port of Tyne in the NECC delegation after regional success.
The Chartered Institute of Marketing (CIM) is calling for co-operation among businesses in a bid to drive the regional economy. CIM is highlighting the work of Prof Roy Sandbach, David Goldman visiting professor of innovation and enterprise at Newcastle University, who is working with the North Eastern LEP to establish a regional innovation strategy using open principles and practice. He is focusing on innovation hubs working as open and collaborative environments, and external engagement with global players who work openly. He is calling for training and mentoring for businesses which want to engage in open innovation, and finance routes that de-risk the intrinsically risky innovation process. “I think the North East could become a bright light, a beacon for others to follow,” he says. NECC’s 50 Reasons to do Business in the North East initiative is building the region’s reputation nationally and internationally and the Chartered Institute of Marketing has been building a Great North East Brands campaign. “Fundamentally,” says Sandbach, “we need a new idea that we can all pin our aspirations on. Companies should work together on this.”
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 13
NEWS
Sea change The Port of Tyne has officially become the UK’s fastest-growing major deep-sea port, breaking its own records for cargo volumes three years running
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Tel: 0191 482 42 71 Earlsway, Team Valley Trading Estate Gateshead, Tyne & Wear NE11 0RQ Fax: 0191 482 4214 E-mail: info@riverdalepaper.plc.uk 14 / www.necontact.co.uk / CONTACT / DEC 2013 - JAN 2014
ort of Tyne’s status as the fastestgrowing deep sea port in the UK follows hot on the heels of it being named North East Business of the Year 2013, creating a real success story for the region. Many of the UK’s top household names, including Argos, Tetley Tea, Nissan, JML, Tommee Tippee and Barbour have come to depend on the port to get their products to market. JML, the company behind innovative products and promotions sold online and via TV home shopping, now ships all its containers through Port of Tyne. An average 10,000 pallets are stocked at any one time in the port’s warehouses. The port’s teams then unpack containers, pick and pack items, and despatch for onward retail distribution to stores such as ASDA, Boots and Wilkinson’s. While the Mayborn Group, the company behind Tommee Tippee baby accessories, has used the port as its principal UK road distributor for more than a decade, it has recently started to ship all its containers into the port for onward distribution across the
in association with
UK using the port’s integrated logistics service. And Tata Global Beverages brings all its UK raw tea imports through the Tyne and the port unloads the containers and stores the tea in its on-site warehousing. Tea is then delivered to Eaglescliffe for blending in the factory before packing into Tetley teabags. Car manufacturer Nissan leases 20,000sqm of warehousing at the port, specifically for despatching parts direct to its plant at Sunderland, seven miles away. Parts imported directly into Port of Tyne are unloaded and stored ready for direct delivery to the plant, eliminating an entire transport leg. Meanwhile, finished vehicles return to the port to be exported to markets around the world, which makes the Port of Tyne the UK’s largest car exporting port and the sixth largest in Europe. Counting many major brands among its customers, the port also works with small and medium-sized businesses in the North East and is encouraging regional business to find out how its integrated package of container handling, warehousing and distribution can help them.
ADVERTORIAL
MARINE SAFETY SUPPLIES GOES DUTCH!
APPLIANCE OF SCIENCE Teachers across the country are benefiting from a computer science event run by Teesside University with funding from Google. More than 1,000 lesson plans have been downloaded following the two-day event to help teachers develop the next generation of computer scientists. Teesside ran the Computer Science for Teachers event after receiving a £4,500 grant from Google to train
secondary school teachers in how to deliver vital computing skills to their pupils. A total of 30 schools from across the North sent representatives to Teesside, where they took part in workshops and masterclasses in a range of computer skills before preparing lesson plans to share and download. The university now plans to run similar events in future.
WE’RE FEELING OPTIMISTIC Latest job statistics show business confidence is soaring in the North East, according to NECC. The most recent job figures show unemployment in the region fell by 1,000 in the three months to September. North East unemployment now stands at 133,000, or 10.2%, a fall of 1,000 over the quarter but a rise of 6,000 over the year. This compares to a rate of 7.6% nationally. The claimant count stands at 77,300, or 6.3%, in the North East, compared to 3.9% nationally. Employment, meanwhile, stands at 1,168,000, or 67.3% - a rise of 7,000 over the quarter and a fall of 8,000 over the year. This compares to a rate of 71.8% nationally. NECC policy team leader Mark Stephenson says:
A
“Business confidence and investment intentions are on the up across the North East; our Quarterly Economic Survey is an illustration of that. “The divergence between the annual and quarterly labour market estimates does not tally with the increasingly positive nature of the region’s most extensive business survey. “A welcome albeit modest, rise in the quarterly employment figures, will be improved further if the chancellor uses the Autumn Statement to help businesses create wealth and jobs for the North East. “One positive trend has been the falling claimant count, which is once again down and now stands at the lowest level for two years.”
in association with
Joris Stuip, PTR; Matt Collen, Sintons
Tyneside marine supplies business is poised for expansion after being acquired by a global leader in the industry, which has established its first UK base in the process. Marine Safety Supplies Limited is now under the ownership of PTR Holland Group, which supplies marine safety equipment around the globe and is the world’s largest manufacturer of marine-use rope ladders. It has divisions in the Netherlands and Singapore and major warehousing facilities in destinations including China, Brazil and the United States. The deal was overseen by the commercial team at Newcastle law firm Sintons. Joris Stuip, managing director of PTR Holland Group, said: “We do the same kind of work that Marine Safety Supplies do, but on a much bigger scale, so we will be able to use our international network to help develop the site. We are committed to developing what we have in North East England. We will spend the first three to six months settling in, as we do not want too much change all at once for the employees, but after that time, we will look very seriously at expanding.” Alan Ellis, company director and founder, said: “This acquisition brings Marine Safety Supplies into the global marketplace on a scale we could not have achieved before. I am very excited about the future due to the perfect fit of both businesses, and the staff have security as we expand from here onwards.” Matt Collen, Partner in the Company and Commercial department at Sintons, and solicitor Emma Pern, led the team which oversaw the transaction. The vendors were represented by Bittermann & Wood, based in North Shields. Matt Collen said: “PTR Holland Group is a global leader in its field and it is very pleasing to be able to bring that level of expertise to the North East, as well as helping them to make their first UK acquisition. “Joris and his team are committed to developing their presence in the North East and capitalising on the potential of their new site, and we wish them every success for the future in achieving that.”
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 15
NEWS
NEWS
Clean sweep
Longstanding NECC member Poppies Durham is celebrating a milestone anniversary. The cleaning company, founded by former schoolteacher Elizabeth Richardson, has now been running for 30 years, counting former Newcastle United footballer Robert Lee and manager Sam Allardyce as clients while they were living in the area. Despite reaching retirement age, 66-yearold grandmother-of-three Elizabeth has no plans to hang her duster and mop up just yet, after first setting up as a franchisee when her children started school.
NEWS
Irish flies Aer Lingus Regional has launched its first flight to Dublin. The airline will now operate two daily return flights to Dublin Airport from Newcastle. It will help passengers flying to the US by connecting them to Aer Lingus mainline services to major North American cities, including New York, Chicago, Boston, San Francisco and Toronto through Dublin, with day return flight times for business trips.
ON THE RIGHT TRACK
Businesses from across the North have united to voice support for High Speed Rail, which they claim will reduce the North-South divide. In a letter to the Prime Minister, a group of northern Chambers of Commerce spell out how HS2 could create 22,000 construction-related jobs in the next five years, potentially rising to 50,000 by the late 2020s. It adds that the Core Cities group predicts HS2 will create 400,000 jobs and deliver local economic output productivity gains of £15bn per year by 2037. Chambers of Commerce from across the North of England, representing more than 20,000 businesses employing more than1.5m people have backed the letter, which outlines the benefits of a high speed network and backs the Government’s plans for the new rail infrastructure. Authored by James Ramsbotham,
North East Chamber of Commerce chief executive, the letter says: “As a group of Northern chambers not all of our towns, cities or members will be connected to a high speed rail network. However, we are united in support of the project because of the impact HS2 will have on our members and the ensuing economic uplift this will generate in the North of England. “Future business success depends on infrastructure networks that meet demand. Rail is no exception. The UK rail network must have the capacity to meet rocketing business demand – for long-distance services, for commuter rail services, and for the transport of freight.” Ramsbotham says while it’s indisputable the scheme is costly, so too was the roll out of the railway system more than 100 years ago, HS1 and the channel tunnel which have all delivered for UK plc.
PRIDE AWARDS It was a good night for North East Chamber of Commerce members at the North East Pride Awards to celebrate excellence in regional public relations. Cool Blue Communications won eight gold awards, Northumbria Healthcare NHS Foundation Trust claimed two, and Balfour Beatty Worksmart, Northumbrian Water and East Cost Main Line were all recognised. Durham County Cricket Club chief executive David Harker was named Communicator of the
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Year and NECC PR manager Bryn Littleton received the Ken Robinson Award, which recognises excellence of service to the media and is selected by regional journalists. Bryn started his career as a reporter with the Morpeth Herald before moving to the Journal in Newcastle. He moved into PR with Northumberland County Council before moving to One North East where he handled many high-profile projects. He joined NECC in 2011.
in association with
Ross Wigham, head of communications at Northumberland County Council; Bryn Littleton, PR manager at NECC; Gerry Jackson, BBC News
NEWS
Green shoots Gestamp’s Mark Potts with Sunderland City Council leader Paul Watson
Mini win
Sunderland-based car parts now has 196 employees at Sunderland. manufacturer Gestamp has As a result of the BMW won its first major contract contract, which runs until with BMW, to provide parts 2021, nine temporary staff for the new Mini series. at Gestamp have become Gestamp has just permanent and more jobs invested £150,000 in a could be secured new 1125sq m to cope with extension at its the growth in Washington TURNOVER demand. plant to store WILL BE With the the newly £34M-£37M new longproduced BY 2015 term contracts Mini parts operations before they are director Mark delivered to Oxford. Potts forecasts that The company turnover in 2015 will be designs and builds chassis between £34m-£37m. The and parts for global motor success in attracting new manufacturers Nissan, customers comes after General Motors, Jaguar the introduction of a lean Land Rover and now BMW. development programme in The Spanish-headquartered 2008, and with support from firm, which also has a Sunderland City Council.” site in Newton Aycliffe,
DINNER DATE A gala dinner celebrating North East business achievement took place with a host of high-flying speakers. This year’s North East Chamber of Commerce Tyne and Northumberland Dinner had an aerial theme with a keynote address from Emirates Airline President Tim Clark, and after dinner speaking duties from Jarrow
Arrow Steve Cram. The event at Newcastle Civic Centre attracted more than 300 guests and was sponsored by Newcastle International Airport and academic high-flyers Gateshead College. Clark spoke about the important overseas markets being opened up by the airport’s Emirates Airline route (see p60). in association with
A green business energy specialist has moved into new premises to help it grow. Energy Maintenance Company (EMC) has relocated to Wilton Centre, a science and technology park between Redcar and Middlesbrough, which is aiming to attract new business from the oil and gas sector. Managing director Shaun Nugent says the centre’s proximity to current and potential new clients, including Sembcorp and Lotte, was one of the reasons for the move. EMC provides energy efficient engineering technologies to enable businesses to meet carbon reduction targets.
NEWS
The full package A pioneering North East packaging recovery firm has officially opened its new site on Teesside. Returnable Packaging Services (RPS) Limited, one of few companies which recover commercial packaging for reuse, including wooden pallets and bulk bags, has moved to a larger site in Maltby. RPS, which was previously based in Ripon, held a launch day at its new premises, after an award-winning year. DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 17
AWARDS
Talent show Some of the North East’s most talented businesswomen have been celebrated at a special awards night
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he 14th annual North East Woman Entrepreneur Awards brought together high-flying business women from a variety of sectors across the North East to see recruitment specialist Jo Hand claim the honour of North East Woman Entrepreneur of the Year. Judges this year shortlisted women who demonstrated focused, clear leadership abilities in running or playing a key role in business. The standard of entries was particularly strong, with application numbers reaching a record high. Speaking after picking up the trophy at a ceremony at the Gateshead Hilton, Hand, whose agency Jo Hand Recruitment is based in the Tees Valley, said: “Considering the calibre of the businesswomen in the room, I felt humbled and very honoured to win the award. Their stories are amazing. “I have worked very hard in the last eight years to get to this point. For the first four years of running the business I made many sacrifices such as not going on holiday with my family, who were very understanding at the time and very supportive. As well as the long hours, I attended three early morning networking events each week to get the company name and brand out in the business community, effectively working 12 hour days three days a week. “I was taught from a young age that whatever you put into something is exactly what you will get back out of it, this strategy has paid off and I am delighted to win.”
Hand used a voluntary redundancy payment to set up her company and has gone on to win major contracts with steel giant SSI, meaning she was instrumental in recruiting the workforce for the company when it re-lit the blast furnace at the former Corus plant in Redcar. Event organiser Nickie Gott, Chair of NECC’s Women’s Advisory Board and founder of events management company She’s Gott It! says: “I’d like to congratulate all the winners who made judging this year’s event so difficult. It is a cliché to say it gets harder every year, but the calibre of entries this year was phenomenal. “Jo Hand is the latest in a long line of incredibly impressive female entrepreneurs to scoop the Susan Dobson Memorial Award. Her business acumen, knowledge of her industry and standing in the local business community meant she really stood out as this year’s most impressive candidate” North East Woman Entrepreneur of the Year Awards combined this year’s event with the IF (Inspiring Females) Conference held at Gateshead College. NECC director of policy, Ross Smith says: “I am proud that NECC is able to support such an important event that has established itself as a key date in the business calendar. We need more people in our region to start their own business. “If anyone needs inspiration they only need look at the list of winners and runners-up for these awards.”
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Jo Hand with the Susan Dobson Award for Entrepreneurship and Mary Dobson Scott on behalf of the Dobson family
The North East Woman Entrepreneur of the Year Awards 2013
Different strokes
Winners, runners up and sponsors:
Best Retail Business Winner: Alice Blackie, Pink Boutique Ltd Runner up: Charlotte Harbottle, Charlotte’s Butchery Sponsored by: Barbour Best Creative Business Winner: Georgie Cameron, Admiral PR Runner up: Angela Lowery, Y Salon Sponsored by: Big Purple Productions The Key Woman Award Winner: Catherine Johns, Business Durham Runner up: Claire Carter, Collins Seafoods Ltd Sponsored by: AkzoNobel Best Use of Technology Winner: Alice Blackie, Pink Boutique Ltd Runner up: Lyndsey Johnson, LJ Retail Group Sponsored by: Business Durham Best Woman in International Business Winner: Jacqui Miller, Miller UK Runner up: Nagma Ebanks-Beni, Prima Cheese Sponsored by: UKTI Best Small Business Winner: Kate Dawson, The All-in-One Company Runner up: Janet Maitland, Hair Excellence Sponsored by: NatWest Best New Business Winner: Eve Whitaker, The Eight Runner up: Alice Blackie, Pink Boutique Ltd Sponsored by: NECC Best Social Enterprise Winner: Gill Walker, Patchwork People/Labelled CIC Runner up: Kate Bradley, Newcastle United Foundation Sponsor: NESEP Young Entrepreneur of the Year Winner: Leanne McHugh, Love Food Ltd Runner up: Alice Blackie, Pink Boutique Ltd Sponsor: Gateshead College Best Home Based Business Winner: Carol Lewcock, Mrs L Cards Runner up: Maccine Hall, Designs Unique Sponsor: WIN Ltd The Susan Dobson Award for Entrepreneurship Winner: Jo Hand, Jo Hand Recruitment Ltd Runner up: Paula Esson, Northern Integrative Health Practice Sponsor: The Susan Dobson Memorial Fund One To Watch Award Winner: Claire Carter, Collins Seafoods Ltd
Cat Brownlie of Akzo Nobel
Building a unique culture is something many companies can only dream of. But Woman Entrepreneur of the Year award sponsor AkzoNobel is taking full advantage of the opportunity opening a new plant affords, by striving to recruit an innovative and diverse workforce. The firm, best known for making globally famous brands including Dulux and Cuprinol, will be opening its £100m Decorative Paints flagship facility in Ashington in autumn 2014. AkzoNobel describes itself as passionate about creating a diverse environment that will motivate people to learn and grow. The firm says it is taking a “very different” approach to recruitment to find people with innovative ideas, who embrace change and want a voice in the way the company they’re employed by works. It includes working alongside Northumberland College to develop a bespoke two week pre-employment training course that allows unemployed people the opportunity to demonstrate they have the mindset and attitude the company is looking for. January will see the first of the chosen candidates take up their posts at the Ashington plant.
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 19
FOCUS 2013
What a difference a year makes... So how has 2013 been for you? NECC members and member groups review the year as it comes to a close
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ECC’s Manifesto for Growth 2013 set out NECC’s aims for a year which brought much to feel optimistic about, including the 50 Great Reasons to do Business in the North East campaign. The campaign document was presented to leaders at the party conferences and was translated into Russian, French, Arabic, German, Chinese and Japanese, accompanying members who travelled the world. NECC’s inward investment report, Bringing Business to the Table, produced with Partner member Eversheds, outlined the region’s appetite for repatriating manufacturing as councils in the North Eastern LEP area looked at reconfiguring inward investment activity following the Adonis Review. NECC worked closely with the team behind Adonis’s North East Independent Economic Review and had direct input on areas including skills and transport. NECC also contributed to local
economic strategies prompted by the Heseltine and Spending Reviews, it supported City deal proposals for Tees Valley and Sunderland, and it helped to devise strategies for spending European funding. Having produced the Transport Priorities document jointly with the CBI, there were successes concerning the futures of the A1 and A19. International connectivity remains a priority, highlighted in the Faraway So Close report by IPPR North, and NECC is working with Partner member Newcastle International Airport to secure a direct flight to the USA. Partner member Esh Group worked closely with NECC to bring business and academia together, and NECC also welcomed the UK Commission for Employment and Skills in July to consult with members ahead of a major reform of apprenticeship funding. NECC also helped to devise local plans and worked with Newcastle and Durham in particular on development
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plans following consultation with NECC’s Development Group chaired by Philip Baker of Banks Group. There are ongoing efforts to help firms access public procurement opportunities and the further development of the North East Procurement Organisation (NEPO) as part of NECC’s Buy North East campaign. NECC has also raised concerns with the Government over the use of national frameworks for construction contracts. Energy minister Michael Fallon, Nick Clegg’s private secretary Jo Swinson, minister for work and pensions Mark Hoban and shadow business secretary Chuka Umunna all visited and met with NECC members, and discussions were secured with Nick Clegg, Vince Cable, transport minister Patrick McLoughlin and shadow BIS and Treasury teams. NECC’s manifesto sets out how we champion regional business and how we aim to make the North East a success. Manifesto 2014 will be published in the first week of January.
LOOKING BACK AT 2013
Former NECC president John Mowbray, chair Alan Ferguson and chief executive James Ramsbotham in Abu Dhabi
Former NECC president John Mowbray with Akira Koyama, president of Vantec Corporation, in Kawaski, Tokyo
NECC president Dave Laws, Andy Street of John Lewis, NECC chief executive James Ramsbotham
Minister for women and Equalities, Jo Swinson
Travels in Japan
EXPORT SMALL WORLD
In 2013 NECC championed the North East and built contacts across the globe on behalf of its members. Chief executive James Ramsbotham, former president John Mowbray and chairman Alan Ferguson met chambers of commerce in Osaka and Abu Dhabi. NECC organised a trade mission to Russia, attended an Indian chemicals conference, and welcomed delegates from Germany’s Bochum Chamber of Commerce, the South African, Canadian and Australian High Commissions, and the Indonesian Embassy. Chambers of commerce stretch worldwide and NECC connects businesses with this global network. NECC’s work with overseas chambers in lucrative export markets provides members with expert local knowledge, while NECC’s international trade team provides expert operational support. Export leaders which have worked with NECC this year include Guardian Marine Technology, Ecco Finishing, Hart Doors, and Pinnacle Re-TEC.
The delegation from Bochum, Germany with NECC chief executive James Ramsbotham
NECC chair Alan Ferguson (l) and former NECC president John Mowbray (r) bump into Gordon Brown MP in Japan
Barbara Stephenson, US deputy chief of mission, meets NECC members
PRESIDENT’S CLUB SKY’S THE LIMIT
With a new captain and an expanding crew, NECC’s President’s Club really took flight during 2013. President’s Club represents 240 companies and organisations employing around 25% of the region’s workforce. In 2013 they welcomed high-profile speakers including former energy minister Lord Howell, who had previously declared parts of the North East “desolate”, but in a speaking date at Wynyard Hall called for additional energy investment for the region. In July, John Lewis MD Andy Street told members that public and private sector partnerships could stimulate economic development and recovery views which chimed with NECC’s new president, Dave Laws, chief executive of Newcastle International Airport, who said: “Many voices and fragmentation will only hinder our efforts to develop a sustainable regional economy. Our focus must be on working together...because the whole is almost always greater than the sum of the parts.”
John Mowbray with Trevor Mann executive vice president for Europe Africa and Asia at Nissan HQ, Japan
NECC former president John Mowbray in Abu Dhabi The 50 Great Reasons document, translated into Arabic
PARTNERS COLLECTIVE GOOD
NECC Partners have driven policy and shared expertise throughout 2013. They include Barclays, which supports NECC’s Quarterly Economic Survey, and KPMG, which supports NECC’s work on the Budget and Autumn Statement. NECC’s Development Group is led by Philip Baker of Banks Group, the Transport Forum is chaired by Graeme Mason of Newcastle International Airport, and the Energy Forum is led by Jon Bird of Northern Powergrid. HSBC assists members in international trade, and BT supports NECC on broadband. Speakers have included TUC General Secretary Frances O’Grady, Bank of England chief economist Spencer Dale and Matt Oakley, head of economics at the Policy Exchange. Partners: Franks Flooring, HSBC, Port of Tyne, Barclays, Virgin Money, Teesside Uni, Gateshead College, Bond Dickinson, Tesco, Banks Group, Newcastle Airport, Esh Group, KPMG, Croner, Northern Powergrid, Durham CCC, Go North East, BT, John N Dunn Group, SAFC, Northumbrian Water, Capita IT.
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 21
FOCUS 2013 Kari Owers Managing director OPR, Newcastle
Dave Sidlow Managing director Palintest, Gateshead
Dave Coulson Owner Peace & Loaf restaurant, Newcastle
The highlight of the last 12 months has been being named North East Woman Entrepreneur of the Year and then representing this region in a range of media, including a recent BBC Radio 4 Today discussion. I was pleased to report the beginnings of an upturn here in the North East from my own and our clients’ perspective. Optimism is starting to rise and I have witnessed our clients not just surviving the recession, but significantly developing, diversifying and growing. It is the businesses with the passion and commitment to be innovative that have started creating new jobs and winning contracts here and abroad. As for challenges in 2014, the skills agenda is of continued importance in many sectors in which we operate. Growing, attracting and retaining great people is vital for us all, and I’d like to see more support for small firms in creating new jobs and career opportunities, especially for young people.
2013 has been an eventful and productive year both at home and overseas. This was recognised with a Queen’s Award for Export. The year also brought its share of challenges. Political instability in the Middle East has affected markets and the strength of Sterling has eroded some of our export earnings. The single biggest challenge is in finding skilled staff. For 2014, we are well positioned to accelerate growth, with the imminent launch of some exciting new products. A major area of opportunity is in some of the rapidly developing African economies. Countries like Ghana, Kenya, Ethiopia, Uganda and Nigeria are all investing in improvements to their infrastructure which create significant opportunities for Palintest. We are already well placed to take advantage of this region with an established distribution network in place and products developed specifically for the needs of these markets.
The challenge in 2013 for me personally was to get the restaurant open before Christmas. We managed to open at the end of October, but it was a great struggle to ensure that we were ready to greet our diners. We held a launch party in November attended by more than 250 people, which was a fantastic showcase - and stressful! Anyone who watched me on Masterchef the Professionals will know I’m a perfectionist, so the pressure to ensure that we were 100% ready to welcome our guests was a challenge in itself. We pulled it off and I’m proud to say that with the help of the fantastic team it all went swimmingly. For 2014, we want to ensure the restaurant goes from strength to strength and is recognised by the Michelin Guide. We also want to ensure that we are well received by the locals as, after all, they are our bread and butter. If we manage to make ourselves millionaires in the process too, well, that wouldn’t be such a bad thing.
Michael Fitzpatrick Managing director Activ Technology Services, York
Paul Stott Owner Lasercutouts, Sunderland
Alex Cooper Managing consultant CFR Global Executive Search
The highlight of 2013 has been the Activ rebrand; confirmation of our transformation from a telecom business to a technology provider. We now use the strapline ‘Hello Technology’ which reflects our commitment to an ongoing conversation with our customers to help them understand the power of technology, improve efficiency and save money. It has been much more than a rebrand. The ‘hello’ culture has changed our business inside and out. I’m excited about what the next 12 months will bring. As access to superfast broadband continues to roll out, there will be more opportunities for business to embrace digital communications. The roll-out of 4G mobile connectivity will further enhance our access to the internet while on the move. Remote access to business tools while away from your desk has become a real and exciting prospect, and cloud-based technology will be massive as a result.
Our family-run company has been running since April 2012 as a part-time business until August 2013 when, after redundancy, we went full-time. We’re involved in custom and stock non-metallic laser cutting and laser engraving and in 2013 we moved from home with a single machine into a business starter unit in Sunderland. As orders and customers increased, we purchased new machines and took on staff. In early 2014 we will move into an industrial unit in Washington, some five times larger than we have at present. This will allow us to expand manufacturing and open a retail area so the public can purchase goods off the shelf. With the increase in manufacturing and the retail area this should allow us to increase our customer base and the number of staff we employ. We have a very busy year ahead with lots of new and exciting challenges to go forward.
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This year, more than ever, we have encountered increasing demand for retained executive search services for senior level executives. We have leveraged our international network of 55 search partners in 33 countries, for companies taking their first steps in export markets and for established organisations wanting reliable talent overseas. We are currently working on a confidential search for a local consumer goods manufacturer to find a regional director based in the Far East, and our flexibility has allowed us to win a major tender for the senior recruitment needs of a multi-billion dollar packaging manufacturer across Europe (we have facilities in 13 of the 14 countries where they operate). As an executive search business we aim to support North East business in their export strategy, but of course we don’t only work on an International basis, the bulk of our focus is on local requirements and 2014 will be full of opportunities.
New members This page brings you information about the companies that have recently joined NECC - the region’s largest business membership organisation. Along with contact details, there are announcements from new members keen to publicise their products, services and activities to other NECC members. While listings are free to all new members, editorial announcements are part of a broader package designed to promote a new member’s business to reach the readership of Contact magazine. For further details contact the Contact advertising team, tel 01661 844 115, email sales@offstonepublishing.co.uk
Thank You For your recent membership renewals. Particular thanks to members supporting NECC for over 15 years
35+ YEARS HNL Engineering Ltd John Lewis NSK Bearings Europe Ltd
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30-34 YEARS Johnsons Apparelmaster
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25-29 YEARS Parkmore Hotel & Leisure
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20-24 YEARS City & Suburban Window Cleaning 24 Electrical Services North East 24 H C Controls Ltd 24 Osborne Motor Transport Ltd 24 Pro-Ad Limited 24 Readman Associates 24 Reynolds Outdoor Centre 24 Apex Radio Systems Ltd 23 Chemson Limited 23 Copthorne Hotel Newcastle Ltd 23 Increase Computers Ltd 23 Jacobs UK Limited 23 Millfield Group 23 Theatre Royal 23 Aon Risk Solutions 23 Nexus 23 South Tyneside College 23 W Mearns & Co Ltd 23 Guthrie & Craig 23 Lumsdon Wood Partnership Ltd 23 D L I Seals Ltd 23 Sunderland Marine Mutual Insurance Company Ltd 23 15-19 YEARS
The contact details of all the companies which joined NECC between September 1, 2013 and October 31, 2013 are now available at www.necontact.co.uk under the ‘New Members’ link
Brewin Dolphin Eclipse Translations Limited EDF Energy Nuclear Generation Limited Keith Turner & Sons Lingfield Warehousing Ltd MMC Europe Limited
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Mowden Controls Ltd 19 Parnaby Cyclones Limited 19 Seaward 19 Smart Logistics Limited 19 Thermacore Europe Limited 19 HPF Energy Services 18 Joy Mining Machinary (Continental Conveyor Ltd) 18 Maughan Reynolds Partnership Ltd 18 Naylors Chartered Surveyors 18 North Tyneside Council 18 Queen Elizabeth Sixth Form College 18 Hartlepool College Of Further Education 17 Mike Lynch Advertising 17 MJR Controls Ltd 17 Royston Limited 17 The Roundhouse Design Consultants Ltd 17 AWS Contracts Ltd 16 Charlton & Co 16 Laminform Ltd 16 Liddles Detective Agency 16 MEH Company 16 Northern Commodities Ltd 16 Olivers Tree Services Ltd 16 Stenhouse Flooring Limited 16 Topside Group Ltd 16 Barclay Roofing Ltd 15 Burns Accounting Services Ltd 15 Corepeople Recruitment Ltd 15 Crimewatch Safeguard Security Systems Ltd 15 Darlington Borough Council 15 Durham Sixth Form College 15 ESP Plastics Ltd 15 Falcon Computers Ltd 15 IQMS 15 Knowles Limited 15 Marine Engineering Pipeworks Ltd 15 Office Angels 15 On-Line Managed Offices 15 Osborne Engineering Ltd 15 R & J Bearings 15 Transped Ltd 15 Westray Recruitment Consultants Ltd 15 Worldfreight Ltd 15
The above includes members who have supported NECC for over 15 years and renewed their membership during September to October 2013. We would like to thank all of our members for their continued support.
RINGTONS
News of the brews How do you make a historic family firm relevant to modern-day customers? Liz Hands talks to Ringtons’ divisional director Jon Malton
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s soon as I walk through the door, I’m not so much hit, but embraced by the delicious smell of freshly brewed tea. Even if there were no signage on the building, it’d be obvious I’d come to the right place. Ringtons is one of the brands most synonymous with the North East. Just about everyone has a story to tell about how their grandma or their mum had regular tea deliveries. And most households in the region have the odd piece of Ringtons memorabilia lurking at the back of the cupboard - whether it’s the diecast model carts and cars or the cups and bowls produced during the family firm’s 106-year history. But despite all that heritage - and the undoubted goodwill for Ringtons in the region - the company, still family-owned and run and based in Newcastle’s Algernon Road, is facing one of its most challenging times to date if it is to appeal to the next generation of tea, and coffee, drinkers. As Jon Malton, Ringtons’ divisional director, explains: “We’re not going to be complacent about demographics and say we’ve
firm has now expanded into the got an ageing population so south and has nine franchisees it’s okay if we just appeal to a on board in Bournemouth, certain age group. Eastbourne and Brighton. “Anyway, pensioners today “Places,” Malton says, “where are very different to we thought they’d appreciate a pensioners 20 years ago. really good cup of tea.” We’ve got to hook people And the company is also from their twenties, thirties looking much further afield, and forties before they even with plans to break into reach that age group. We’ve American and Japanese rebranded to appeal to markets. “We’re in younger people. serious talks with They will see us people in out and about “WE THOUGHT California about and we hope THEY’D our herbal and experience us APPRECIATE green teas and much earlier. A REAL we’re looking at “People we CUP OF TEA” Japan where tea talk to might bags have been say their mum synonymous in the got Ringtons or their past with poor quality. But a grandma, but they don’t. younger generation there is So, it’s about trying to get looking for the convenience of them to follow that family tradition. Previously, we might tea bags but with a quality have operated while they were product and the Far East wants an authentic British story.” at work, but now we’re going Ringtons’ beverages arm is into the early evening until also in a period of expansion, 7pm, so when people get with a prestigious new contract home, they can enjoy a expected to be announced any Ringtons delivery. We’re also day. But Malton says if the going into workplaces so company is guilty of anything, people can club together if it is being shy about what it they want. We can deliver to a does. That gentle approach is younger audience that way.” pushed forward by the fourth Ringtons’ current strategy generation of the founding is not just about appealing to Smith family. Simon, Nigel and a wider age group, but to a Colin Smith are all directors, wider geographic area. The
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“We’ve got to hook people from their twenties, thirties and forties”
along with Malton, who became Ringtons’ first non-family director in 2007. “They work as hard as anyone else,” says Malton. “And they’re ambitious for the business. But they describe their business philosophy as being quietly persistent. They like to make progress in a steady and sound way, as do I. “Beverages has gone from a turnover of £1m to £3m,” he says. “But we’re very modest. We’ve got commercial customers of 20 years standing and when we say ‘why don’t you take some coffee?’ they say ‘you do coffee?’. And, we still find ourselves answering the phone ‘Ringtons Tea’.” Given that online retail sales are at an all-time high, with latest Office for National Statistics figures showing the UK spends £7bn online every week, it’s no surprise Ringtons’ ecommerce offering is also going from strength to strength. Breaking into song Malton adds: “We can deliver anytime, anyplace, anywhere. I know I’m drifting into Martini advert territory now.” And the firm has developed innovative touches, such as allowing customers to simply input a code to order coffee, for example, if they have enjoyed a cup at Café 21 in Newcastle, one of the restaurants Ringtons supplies. But no matter how Ringtons innovates, expands and develops, the traditional doorstep delivery service will always be an imperative part of its business model. Those familiar black and gold liveried vans, and their drivers, are the lynchpin of Ringtons’ strategy. That delivery service has a £28m turnover, serves a total 260,000 customers across England and Scotland, and 320 employees. And while it has changed with the times moving from old-fashioned
cash books to hand-held terminals and cutting down on administration tasks for sales staff to allow them to spend more time with their valued customers - its basic principles remain the same as when Ringtons was launched by the Smith family more than a century ago. “We don’t want sales people,” says Malton. “We want people who are customer -focused, who genuinely feel something for others because that bond between them and the customer becomes stronger. Our business is based on lots and lots of people buying a little bit and we nurture all those relationships.” In Ringtons’ tasting room, where tasters try 200 teas a day, it’s evident how seriously the firm takes standing out from the crowd. One of the things you’re looking for,” says Malton, “is the brightness of the tea, because with cheap tea, it can be a very dull brown colour. But ours is bright and golden. It’s about quality and consistency all the time. Because it’s a natural product, you need to make sure the blend is right to get that consistency. We spend a lot of time doing that.” It’s time that has paid off as Ringtons has weathered the recession, growing from a turnover of £30m in 2008 to one of around £43m now. “We saw the recession coming and we made a conscious decision not to take part in it,” says Malton. “We’ve done well because we’ve focused on what we’re good at. We’ve never spent more on developing new product and we’ve done everything possible to improve the customer offering. That’s what has got Ringtons through two world wars and umpteen recessions. “It’s why we’re still here, and here to stay.”
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COUNTRY LIFE
Modern manors
How to make an historic family estate earn its keep? Octavia and Jono Hedley-Dent have turned theirs into a luxury business, as Liz Hands discovers
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t would have been perfect fodder for an episode of Country House Rescue a Grade I listed Pele Tower with a colourful past in danger of being lost to future generations. But owners Octavia and Jono Hedley-Dent were so sure they were on the right lines with their business plan to make Shortflatt Tower just outside Belsay, near Ponteland, pay for itself, they turned down an opportunity to appear on and be advised by the Channel 4 show. “People said we should go on Country House Rescue,” says Jono. “But we didn’t feel we needed rescuing. From their point of view, they want you to be making mistakes so they can come in and save you from yourself. They don’t want to be patting you on the back and saying you’re on the right lines as that doesn’t make for good television. It works for some people. It just wasn’t for us.” Now, having developed their new venture through one of the worst recessions the UK has seen, Shortflatt Tower is testament to their self-belief and business acumen. A 13th Century stronghold, Shortflatt has been in
here unless Shortflatt paid for Octavia’s family for quarter of itself, as neither of us have a millennium. The most historically had huge salaries.” famous of Octavia’s ancestors Jono adds: “You’d need to was her great-grandfather, be a stock broker or a hedge Edward Dent, known as Neddy, fund manager with half million a greyhound trainer whose pound bonuses coming in to dog Fullerton was the canine be able to live in a house this equivalent of Red Rum, size and do it justice. It would winning the Waterloo Cup have begun to deteriorate. In three times in a row. fact it had almost got to Shortflatt has also been that point.” home to war evacuees sent to That’s where the idea to turn the country to escape Shortflatt into a luxury potential bombing and it’s accommodation where Octavia’s provider came in. father Major “I NEVER TIRE Now the tower is Ronnie HedleyOF THE REACTION available to let Dent brought as a his new bride, OF PEOPLE WHEN countryside American art THEY COME retreat. And historian Nancy, THROUGH THE there’s also a to start their DOOR” separate cottage married life in the grounds, along together. When with a boutique spa, Octavia was born in 1967, Fullerton Place, named for the the historic estate became her successful greyhound whose playground as she flitted winnings are thought to have between the main house paid for the stable block. where her grandparents lived “I think lots of people who and the former servants’ have historic houses like this quarters, exploring the have hated the fact they’ve had grounds and helping her to open them to the public,” grandmother in the garden. says Octavia. “But I’ve never But days like those felt that way. In fact, I really portrayed in Downton Abbey enjoy it. I never tire of the are long gone. As Octavia reaction of people when they explains: “Economics were come through the door and going to dictate that we they say how much they love weren’t going to be able to live
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it. That satisfaction of showing people into the house just makes me feel even more privileged to live here all the time. “We were lucky enough between the two of us to be able to make it a reality because we had the skills to do that. We may not be hedge fund managers, but we have great practical skills.” Jono studied engineering before moving into retail and commercial vehicle sales. He then helped to develop a restaurant, working front of house, before turning to property restoration in Spain. Octavia meanwhile, started her
career photographing interiors and architecture before studying building surveying and working on renovation projects in London and Spain. It was while in Spain that the pair met, when Jono helped Octavia with one of her properties. “She married the builder,” he jokes. The couple were married in a humanist ceremony at Shortflatt. “That was really the beginning of using Shortflatt for weddings,” says Octavia. “We were already thinking along those lines and when we had our ceremony and reception here, everyone said what an amazing venue it was. “Then, because my mum was American and happened to be having some paperwork done, we had the registrar for Northumberland come along. It was two days before Christmas. There was a huge Christmas tree outside and there had just been a smattering of snow. She mentioned there was a push to get smaller venues licensed and was very impressed by Shortflatt so it seemed that fate was pushing us in that direction.” It was fate also that decided when the Hedley-Dents would launch Shortflatt as a business venture. “My parents were in advancing years but we’d discussed all our plans with them and they were behind us and happy for us to make a go of it,” says Octavia. “They enjoyed seeing the beginning of it before we lost them. “Starting the business in recession was dictated by the age of my parents. That’s just the time when we needed to pay the bills. We’ve been lucky that we’ve survived the last few years and we’re positive about the business despite the times.” There was, however, never any question of scrimping on the finish at Shortflatt. For Octavia, it was a labour of love as she wanted to do justice to
the family home and, for Jono, it was about offering guests the best. “It’s the difference between creating a business that you’re not emotionally tied to and one like Shortflatt,” says Octavia. “This is not just a business – it’s business, home, family and history.” Jono adds: “We knew the house had to be refurbished to a high standard because it’s a special place. So we went for five-star gold standard and that took a lot of money and a lot of effort. We didn’t get here by accident. “That’s now enabling us to offer something that is a niche market. Because even with the recession there are still people who have got money or have saved up for a special occasion. It’s just that now they want to make sure they are spending that money on something extra special. That’s the market we’re tapping into.” Shortflatt now has four main business strands accommodation, weddings, spa and corporate. While all four business streams were “a bit alien” to the couple when they started, they are now in their third wedding season and are developing the corporate side offering Shortflatt as a venue for training, away days and management planning. The spa has just celebrated its second anniversary and it all means that Octavia and Jono - who have three children between them - have achieved their aim, to run Shortflatt as both a home and business. “I was always brought up with the intention that the house would stay in the family,” says Octavia. “I guess that expectation was an old-fashioned one, so we had to be realistic about how we were going to do that. I would have been very sad to be the one who lost the house for the next generation.”
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SUCCESS
Brave new worlds North East Business Award winner Atomhawk Design has the world at its feet, as Bryn Littleton discovers on a journey into another world altogether
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rom the golden Halls of Asgard, through the scream-filled corridors of Arkham Asylum via a zombieinfested holiday island and an alternative-reality Tyneside reclaimed by nature - one Gateshead company does not so much have the world at its feet as numerous worlds in its hands. In fact, Atomhawk Design does not just operate in different worlds; it creates new ones, populating them with exotic characters, supercharged vehicles, salivating horrors and futuristic weaponry. The Gateshead-based creative design agency has only just entered its fifth year in business but has quickly established itself as a global player in the design sector, securing a string of contracts with industry leaders such as Warner Bros, Ubisoft, Sega and JK Rowling’s online Harry Potter experience, Pottermore.
Straddling the video game, blockbuster movie and consumer product arenas, Atomhawk has been responsible for some of entertainment’s most memorable moments in recent years. Its character, backdrop and user interface design has helped game titles like Mortal Kombat 9, Dead Island and Driver. San Francisco shot to the top of bestseller charts and the firm’s work will be showcased across the world once again when Thor II: The Dark World is released. Atomhawk has also created The Realm, a visually stunning game IP designed for PC and touchscreen devices. Set in the distant future, the game features breathtaking North East vistas such as Newcastle and Gateshead Quaysides, reclaimed by nature with giant creatures roaming beneath the fallen metal of the Tyne Bridge. Coupled with an exciting link with world-renowned Italian car designer Pininfarina (famed for its work with Ferrari) for a Costa Coffee project, Atomhawk Design has come a long way in a short time.
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Since its inception in July 2009, the company has grown from four employees to 18, with an increase in turnover of 300% in three years. The driving force behind the business is founder and director Cumron (Ron) Ashtiani. A games design veteran, he speaks passionately about the work, his talented team and the business’s future direction. And the future is looking rosy for the company, its ultra-modern offices at the Northern Design Centre a far cry from the company’s origins, which were formulated round a table in the Gold Medal pub in Gateshead. It was 2009; Ashtiani and colleagues Steve Pick, Corlen Kruger and Pete Thompson were told by their employer, gaming giant Midway, that it was closing its operation in the Team Valley and that they would soon all be out of a job. I put it to Ashtiani that Atomhawk was a company born out of desperation. “Absolutely!” he replies. “Even though the UK company had money in the bank, Midway had to close us down to use our assets to pay off debts in the US. It was a tough time for everyone at the company. “When we finally knew what
The company’s ability to deliver helped establish its reputation was happening, I rounded up a few of the best creative people in the business and we decamped to the Gold Medal where I laid out my plans for a creative service focusing on what we all did really well as artists. “Everyone was enthusiastic - the beer helped with that - but most importantly everyone I had approached was in.” A few weeks later, Atomhawk Design secured its first premises from Gateshead Council and the enthusiasm of the initial meeting was translated into ideas and hard work. “We were all excited, but also nervous,” adds Ashtiani. “We moved into our first
council-funded offices at the Greenfield Business Centre in Gateshead. It had bars across the windows and a massive Victorian radiator that couldn’t be switched off. It continued to blast out heat throughout the summer and we had no air conditioning, but the place did the job for us. “Within the first week we landed a big project with Ubisoft and then another with Warner Bros and we were kept busy for the next three months. “A colleague described us as ‘digital gypsies’, and that is what we were as we moved again, this time into the International Business Centre where we started recruiting
staff and buying equipment. Basically, everything we made was re-invested into the business.” The company’s ability to deliver on every element of design contracts helped it to establish a solid corporate reputation. Ashtiani says: “We do everything - whether it’s character design, user interface design, animation sequences; we’re a full service creative business. Securing work on Mortal Kombat in year one and then following that up with Dead Island and Driver: San Francisco created our reputation for good work and we have driven that forward with a fantastic website.
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SUCCESS
“In our second year we developed a relationship with the team behind Pottermore, which is JK Rowling’s online world. We did all the illustrations for that and it worked really well. I think they’re up to book four or five in the series so there is still a considerable amount of work to do. “We were content to work on that and continue with our games work, but by the end of year two we started to get involved in movies. We have worked on, or are working on, three films. Thor II: The Dark World was the first.” The casual way the film is referenced by Ashtiani makes it easy to forget that he’s talking about the latest instalment of a multi-billion dollar Marvel Cinematic Universe franchise, and the God of Thunder’s first movie outing since last summer’s Avengers: Assemble, which went on to become the third highest grossing film of all time. “We were approached for
such as Dead Island: Riptide, the work, which is much Killzone and Injustice: Gods darker than the original Thor Among Us. film, as a result of the work we It has also embarked on an had done in the visual arts exciting project with world,” he says. “The internet Pininfarina to design a is a valuable tool for designers state-of-the-art Costa Coffee and showing your work vending machine, which will to other people on the produce fresh, shop-standard internet provides a showcase vended coffee. for other potential “Costa Coffee clients. wants this “We were “KEYBOARDS WILL machine, found online by BE OBSELETE IN which has been the production FIVE YEARS’ TIME. designed by the designer for THE POTENTIAL FOR guys who Thor II who liked TOUCHSCREEN IS design Ferraris, what we were PHENOMENAL” to stand out in the doing and he market place and are picked us up,” says installing a massive Ashtiani who is originally 27-inch touchscreen They from Sheffield and spent ten they have asked us to take our years working in London video game knowledge and before moving to the North apply it to this machine. East, where he spent two “More and more companies years working as an are becoming aware of the art director. potential offered by But Atomhawk isn’t about touchscreens. Supermarkets to “go Hollywood” and has currently have the most basic continued to produce functionality in their pioneering work on groundcheckouts, but they too will breaking, well-received games
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change. Keyboards will be obsolete in five or six years and the potential for touchscreen development is phenomenal.” The workforce at Atomhawk Design is as diverse as the projects it spearheads. “We’ve got five people from the North East, someone from Sweden, a couple of Danes, two South Africans, and one Pole, so we have a good mix. “All our artists must be good enough to do everything themselves. They may have a strong specialism in one particular area, such as character design, which we value enormously, but they must also be skilled in all other aspects of our work. “The other rule is no egos. We have knocked back amazing artists looking for a job here because they have had egos, and when you have big egos in play then it causes problems and disrupts the creative process.” Atomhawk Design is one of six regional business champions representing the North East at the national British Chambers of Commerce Awards on November 28. The business will be joined by Derwentside Homes, Elddis Transport, Nortech Solutions, Guardian Marine Technology and Port of Tyne in the NECC delegation. NECC chief executive James Ramsbotham says: “We are taking an incredibly strong showcase of North East talent to the BCC Awards this year and all are fantastic champions for regional business. “The region has produced and nurtured some of history’s great innovators and it is fantastic to see Atomhawk Design carrying on that proud tradition. It is playing its part in putting North East innovation on the worldwide map with a portfolio of truly stunning work.”
GREAT BUSINESS PARTNERSHIPS START WITH A CONVERSATION. LET’S TALK. To see how we can apply our expertise and experience to support your business, start a conversation. Please contact Rob Wiggins, Business Development Manager on 0191 227 3576 or robert.wiggins@northumbria.ac.uk
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PROFILE
Like father, like son When it comes to entrepreneurial thinking, Nasser Din learned at the knee of a master, as Liz Hands discovers
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ounis Din was always ahead of the game when it came to spotting a business opportunity. As a young man living in the heart of Teesside’s Asian community, he realised that halal meat wasn’t easily available. So, as his son Nasser Din explains: “He went on the bus to a local farm to buy a few chickens and he slaughtered them in the Asian way.” At one point, Younis, who worked in a steel factory when he first arrived in the North East from Pakistan, was one of the biggest meat suppliers in the region, delivering to shops, restaurants and the community. But he realised it wasn’t going to be long before the supermarkets, which already had Asian spices on their shelves, would spot the market for halal meat also, so in 1976 he set up Supreme Knitwear, which supported four factories at its height, supplying well-known highstreet brands. His three sons – Nasser, Khawer and Babar – joined the family firm, says Din. “We used to supply to everyone from Top Shop to Debenhams, BHS to Etam. I think the only place we didn’t get into was M&S. At one point, we were making 15,000 garments a week.” But in the years following the
When we were starting to shut death of their father in 1989, the up shop, we wound it down very three brothers found themselves gradually over 18 months to facing problems brought about make sure everyone was by the decline of British looked after.” manufacturing. When they decided to move “Manufacturing was no longer into property development, Din viable in the UK,” says Din. “We says: “It was the right time as kept it going for a few years and prices were low and then we then started to look to diversify. experienced the boom. We’ve We could have sunk more money seen prices start low and go up, in and had no return. With dip and rise again and drop. ” imports coming in from the likes Supreme Properties now of India and China along with the owns the Durham Tees Valley introduction of the minimum Business Centre and Boho 6, wage, we couldn’t compete. which is designed to encourage “High street stores were young start-ups into saying we had to meet certain Middlesbrough. In total, the firm price points or they couldn’t buy, has some 500,000sqft of but that didn’t give us any warehousing, margin.” commercial At that point, “MORE NEEDS residential and Nasser and his TO BE DONE TO retail space brothers showed SUPPORT across the they weren’t afraid North East. to do what their SMALLER, LOCAL And while father had done BUSINESSES” some landlords are before them and feeling the effects of spot an opportunity the recession, for Din, and move into a different occupancy levels are still high. field. “When we were in the “Going back six or seven years, clothing business, we had a you could build an office and couple of plots of land,” says Din. leave it as an empty shell and “We rented the factories. We built you’d still have people queuing to and bought more properties. We take on those premises,” he bought a small industrial estate says. “Now we kit out everything, and it just expanded, so it was from the phone lines to the an organic thing. broadband, carpets to “But we made sure we did the air conditioning. right thing by our factory “We’ve still got very high workers. My father had a lot of occupancy levels because we’re respect in the Asian community.
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offering more than a traditional landlord. Some people got complacent and just waited for the right occupier to come along. But tenants have changed and those still doing that have vacant properties. “We’ve identified that the customer wants everything. Our margins are lower, but we’re still reaping the benefits because our vacancy levels are low.” Nasser is now working on a new “living-work” development in Stockton. “We’ll have 10 units where people can live and work. So there’ll be one or twobedroom flats with office space attached. There’ll also be a meeting room so it’s professional. We’re providing all the resources and facilities and we’re also thinking about providing mentors to give new entrepreneurs advice.” But while Nasser helps small and new businesses by offering units free for the first month, for example, or by working with companies who are struggling to pay their rent, he believes the Government needs to do more to help SMEs. “The Government goes all out to attract big companies and they almost ignore the smaller ones,” he says. “When Samsung came into Wynyard, it took a huge chunk of money from the DTI. I remember attending an event at the Swallow Hotel when we were giving Samsung £60m to come here. “They took the grant and they were creating jobs, but for how long? (Samsung announced it was leaving the site in 2004). “My argument was we should be helping local businesses. In my business, we’re a family firm but the community is also like a family. We look after them and, in return, they look after us. We’ve got to help our local economy to grow, supporting local, smaller businesses so they can flourish. Big business, on the other hand, is like a straight line through a rod of iron. You can’t bend it. If it doesn’t go that way, then it just goes. Smaller, local firms have loyalty.” Cleveland College of Art graduate Din now believes the region’s economy needs another body like One North East to drive funding to SMEs and that schools should work closely with businesses to make sure the next generation of entrepreneurs is inspired and encouraged. “My father taught me about running a business,” he says. “He was very forwardthinking and I took that from him. If you give your word, that’s your bond because it takes a lifetime to build your reputation.” CONTACT / www.necontact.co.uk / 33
SKILLS
NEWS
DRIVING SUCCESS Teesside-based Nicholson’s Transport boss David Nicholson has spoken out in favour of apprenticeships, saying they are key to driving success at his firm. The managing director has just offered an apprenticeship to 17-yearold Joe Nicholson and employed 26-year-old Chris Moore (pictured above) to develop the pair’s skills through work-based learning. “When you look at driving efficiency within a business, you need to examine every process to see how it is affecting performance,” he says. “That is particularly true in how we train and retain our staff. I’m a firm believer in the value of apprenticeships. They are an investment for the future and I have seen time and time again, apprentices who have progressed to long and fulfilling careers.” Joe, who joined the family firm in the summer, will work at Nicholson’s Transport while studying one day a fortnight at Darlington College for a BTEC in business administration. Chris has joined the firm after several years working in retail and will be tasked with key customer service roles while continuing his studies.
Taking the lead
Developing the leaders of the future isn’t just about engineering skills on the factory floor, as Owen McAteer discovers
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ork in the community may not have been at the top of the agenda when the young hopefuls at Cummins Engines in Darlington applied for their posts, but they’re learning that skills developed outside the plant are as important to their future careers as those gained within it. The management at Cummins believe the ability to carry out community work, voluntary roles and public speaking are as important to its graduate engineers and undergraduates on placement as the engineering skills they develop in the workplace. It is a role the USheadquartered firm - which employs 763, including 28 graduates and undergraduates on placement - takes seriously. Deals announced since October include engines for London’s Routemaster buses
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provide safe drinking water for and Scania commercial 30,000 people in Rwanda. vehicles. The contracts build One of those involved in that upon a prestigious 48-year project was Jonathon Booth, history in Darlington. 24, who has just started his Plant manager Des second year as a graduate McMenamin says: “What engineer with the firm. He differentiates our graduates is recently addressed 120 the work they do in the teachers and community. Those engineering individuals who “WHAT leaders at an can go the extra DIFFERENTIATES event hosted by mile show they OUR GRADUATES engineering have the IS THE WORK body Semta. capacity to THEY DO IN THE “They tell you move into COMMUNITY’’ when you come to higher level roles. work here that they “Community expect you to be a future work and public leader,” he says. “One thing I speaking gives them a great didn’t expect was the emphasis opportunity to demonstrate on the local community. The some leadership skills in a exposure really helps you low-risk environment and takes to develop. them out of their “On the back of the event in comfort zone.” Sunderland I have been invited Cummins’ entire staff spend into a school to front an at least half-a-day each year engineering careers day. Even if taking part in voluntary two people who had never activities. Hence, earlier this considered engineering do so year staff volunteered to as a result of the event it will be assemble 1,000 filters to help
worth it.” Northumbria University undergraduate Natasha Harbinson, 20, is on a one-year placement with the marketing department at Cummins. She says: “I have been to France and Belgium to the Bus World exhibition where there were 300 companies exhibiting and around 300,000 visitors over five days so that was very good experience. “All the students will be doing some charity work. It gets us speaking to the other people at the company and gets us involved in the community.” Cummins sells engines across the world, in recent years winning an order for 7,000 engines to power delivery trucks in Brazil and construction vehicles in China. In the past it has produced engines for buses used at the Beijing Olympics and in November 2011 announced that engines made in Darlington would power a new generation of London Routemaster buses. Many of the original Routemasters were re-powered with Cummins engines in the 1990s; delivering improved reliability and fuel economy with lower emissions. The success of the first of the new buses which run on a diesel-electric hybrid system, enabling a smaller than normal engine to be used, reducing fuel consumption and CO2 emissions has led to their roll out across Transport for London’s fleet . In November this year Cummins revealed it was to manufacture engines for a further 600 of the buses by 2016, with around 100 due for delivery before the year is out by their manufacturer Wrightbus in Northern Ireland. The announcement of that contract came just days after the Darlington plant won its first contract to make lowemission engines for Scania buses. It expects to produce about 600 a year.
NEWS
NEWS
ENGINEERING A FUTURE Steve Chapman, left, welcomes Paul McGowan of Washington Metalworks to the Grundfos Supplier Excellence Programme
Grundfos launches supplier excellence programme An innovative Sunderland company has launched a pioneering initiative to help create a sustainable, highperforming supply chain. Grundfos, the world’s largest pump manufacturer, employs 185 people at its Wearside plant and is celebrating 40 years in the city this year. One of the company’s priorities is to develop meaningful partnerships with its suppliers, and to this end a Supplier Excellence Programme was launched at Grundfos’s Hungarian site. This has proved so successful, with 17 suppliers currently involved in the programme, that it has now
been launched here in the North East. The first supplier to sign up for the new scheme is Washington Metalworks, a specialist sheet metal work company now based in Gateshead. Steve Chapman, purchase supervisor at Grundfos, was delighted to welcome Paul McGowan, senior contracts manager at Washington Metalworks, on to the scheme. “It’s a terrific initiative that benefits both parties, the customer and the supplier. We’re delighted Washington Metalworks have joined the programme and we hope to sign up another couple of companies before we have our first seminar day in January.”
A North East manufacturer has boosted its workforce with eight new apprentices and another four to come. Working in partnership with NECC, MCPS Ltd has taken on the apprentices at its South Shields base. MCPS has more than 10 years’ manufacturing and design experience in providing comprehensive cathodic protection and marine growth prevention systems to the marine, offshore oil and gas, offshore wind farms and marine civil industries. NECC and its partners are actively encouraging larger companies to develop skills within the engineering sector.
NEWS
LOFTY AMBITIONS
A North East crane manufacturer has flown the flag for the region at a national awards ceremony. Liebherr Sunderland went head to head with companies from across the UK in the National Apprenticeship Service’s Awards Final. The Wearside business was chosen as winner of
the regional heats in the medium-sized employer category. Ralph Saelzer, managing director of Liebherr Sunderland Works, which currently employs 29 people, says: “We firmly believe that bringing the next generation of manufacturing and engineering technicians into the workplace delivers more than just benefits for the employee. We’re proud to represent the North East.”
Liebherr Sunderland’s Brenda Foster and Michael Kent at Liebherr at the awards ceremony
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EXPORT
NEWS
INTERNATIONAL RESCUERS A unique new organisation has been established to promote people-based international relations. Set up with the support of Newcastle City Council and the city’s universities, International Newcastle (IN) will provide information, advice and contacts, and facilitate partnership programmes, projects and events. IN’s Zélie Guérin says: “People do better business in places where they have received a friendly local welcome. One of International Newcastle’s business products is ‘Better Visits’, which helps visitors get more from their stay. We offer bespoke Better Visits packages including visit organising and hosting. Accompanied by local hosts, international business visitors can experience the city and the region in more depth.” Recent French, South African, Polish and Japanese visitors commented on the added welcome they received via International Newcastle. Matthew Ord, NECC international trade senior account manager, says: “Simon, Zélie and Neil are fantastic ambassadors for the region and the offering from Better Visits is first class.”
The road to Rio
In the second of a series outlining the new NECC Access Programme to support business overseas, we explore opportunities in Brazil
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core product. Brazil is BEL has had a sales about to be representative in Brazil for thrust into some 15 years, the global successfully supplying topside spotlight and subsea developments, with next year’s World Cup despite trading difficulties. and the Olympic Games “Brazil is generally in 2016. But for Gavin considered a difficult place to Coleman, Brazil has been do business,” says Coleman. firmly on the map for “In addition to language some time. barriers, there is also a Coleman is Brazil area complex legislative and manager at BEL Valves, a taxation structure that supplier of made-tomust be considered order equipment to when exporting or the upstream oil “PRIVATE setting up a and gas industry. SECTOR local facility. His firm PARTICIPATION “Furthermore, it specialises in is rare that providing IS ON THE UP” anything happens solutions for quickly, in part down hostile to cultural differences environments; as well as the bureaucratic products designed to nature of many organisations. withstand the highest But there are still good pressures, extremes of reasons to consider it as a temperature and deepest place to do business.” water, all of them BEL now has a full picture manufactured in Newcastle. of its customer base, key For BEL Valves, the contacts and competitors’ attraction of doing business positions. It is establishing a in Brazil is enhanced by the local facility and is taking recent discovery of huge advantage of opportunities offshore oil and gas reserves, offered by the Brazilian bringing with it substantial subsea market. demand for the company’s
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Gavin Coleman’s tips for business in Brazil
Be prepared to invest and don’t try to cut corners: Being committed for a sustained period is the most important factor. This will incur considerable cost in terms of resource. However, from my experience and discussions with other companies already established in this market, there’s no other way around this. It’s not possible to break into this market ‘on the cheap’. Be committed: Commitment could be in the form of hiring an experienced country sales representative, but ideally I’d recommend having a company employee spend a prolonged period of time in Brazil to gain a true understanding of the market. Build relationships: Building the right relationships is also key, this can only be achieved over a continued period of dedication to this market. Use industry bodies: They exist to encourage business so should be utilised to their full potential. BEL have previously worked alongside NOF Energy, the Energy Industries Council and UKTI, among others.
GETTING STARTED While market research may reveal excellent opportunities to take North East products and services to Brazil, there are issues that need to be considered before you take the first step: • Brazil operates protectionist laws, some of which relate to the supply of government contracts, which generally need the supplier to demonstrate the product or service being procured has a percentage of Brazilian labour/materials content. The percentage of local content can vary wildly and has been seen to be up to 90% in some cases. Build your Brazilian business model incorrectly around the supply of these contracts and you could find yourself having invested heavily without being able to sell to your customers. • Brazil has Federal VAT (IPI) and State VAT (ICMS). Federal VAT can vary wildly depending on the product or service and State VAT differs from state to state. Getting this wrong on multiple transactions can lead to heavy financial penalties and cash flow problems. • Stringent banking compliance requirements in response to money laundering fines imposed on banks means opening a bank account is not guaranteed. Recently, a $1bn US company was turned down for a bank account without being given a reason after setting up their Brazilian company. • Shareholders are required when forming a company and need to have domicile Brazilian legal representation registered. Sourcing trusted representation can be difficult. • Brazil labour laws are complicated and involve extra salary payments such as bonuses and considerable employer paid social taxes. Make sure you have a solid understanding of these at the outset to avoid your employment budget escalating. For further information regarding the above contact Ray Jones at RTC North, tel 0191 5164400
Why Brazil? According to Nynzi Maung, Access Programme manager, there is every reason for North East businesses to look to Brazil to export. “With an increasingly well-developed regulatory framework and pipeline of opportunities,” she says, “private sector participation is on the up. “There are opportunities across all sectors including shipbuilding and supply chain, oil and gas, public transport and urban mobility – particularly metro and rail, sport and major events, with the rapidly approaching 2016 Rio Games, and alternative energy, as well as high demand for quality infrastructure. So the opportunities are vast – much like the country itself.” Where to find out more Access Brazil will be hosting a free workshop on January 30, 2014 at the Copthorne Hotel in Newcastle, aimed
specifically at North East businesses looking to find out more about establishing themselves in Brazil. KPMG, Deloitte’s, HSBC and RTC North will provide expert insight around the opportunities that lie there, highlighting areas of consideration when setting up a joint venture with Brazil, including legal frameworks, regulatory issues and taxation regimes – the challenges and pitfalls; how to overcome them and how to maximise opportunities. Representatives from British Engines, which has successfully set up a facility in Brazil to cater for oil industry demand for its products, will be on hand to talk about their experiences. Further information about the ERDF-funded Access Programme is also available by contacting Nynzi Maung, tel 08450 768 391, email nynzi.maung@necc.co.uk
EXPORT RESOURCE As part of Export Week, the British Chambers of Commerce (BCC) has announced the launch of a new website designed to support businesses at every stage of their export journey. Alongside partners Cathay Pacific, DHL Express UK, and Experian, Export Britain at www.exportbritain.org. uk showcases opportunities in key international markets and the support available from British Chambers and British Business Groups in the UK and around the world.
It follows the promise of a renewed commitment from Business Secretary Vince Cable to create a global businessto-business network to support UK exporters. Recent Experian research shows hundreds of thousands of businesses in the UK have strong potential and the ability to export, but aren’t currently tapping into overseas markets. BCC commercial director David Riches says: “UK exporters tell us they need personal connections to enter new markets.”
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FAB 5
Fab 5 Happy Christmas? Everyone has memories of one Christmas present they treasure most - some of us more than one. We’ve also all had to face that moment when we smile and thank someone for a present we perhaps didn’t appreciate quite so much...
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Rob Tait
Peter Mckenna Partner TLW Solicitors
Head of programming and events, Newcastle NE1
Sandra Tang
Maureen Armstrong
Business development director, Santander Corporate Bank
Head, corporate finance, RMT Accountants & Business Advisors
Best One of the best presents from my childhood would have to be the Scalextric set I got when I was seven. I don’t think I needed another present for about five years I used it that much. I was really competitive with my younger brother, and I spent most of that Christmas and Boxing Day beating him and thinking I was the best at it. When my mates came round I was brought down to earth, so from then on I played it with my brother a lot more (I wasn’t a fan of losing). More recently, I got a Le Creuset pot last Christmas. Whatever you put in it, it tastes great.
Best My favourite would probably be the snooker table I got when I was seven. I loved it. I would play on it for hours on end. I used to be pretty good and it was handy over the winter months so you didn’t have to go outside. When my parents were at work my granddad would pick me up from school and teach me how to play and, more importantly, how to beat my mates.
Best It was an amazing Tatty Devine dinosaur necklace from my boyfriend a couple of years ago. It’s such a statement piece and I adore it. It’s black vinyl, made up of tiny parts, including pieces of dinosaur bones, forming a T-Rex skeleton. I’d seen it and lusted after it for months, so it was incredibly sweet that he remembered.
Best One of my absolute favourite Christmas presents was bought by my husband last year. I’m an avid reader so he bought me a Kindle, which I absolutely love. I feel like I should still read proper books, but it’s so much easier to just download them at the touch of a button, plus they don’t take up tons of space.
Best One of my best is also one of the strangest - it was a unicycle. I had a go on one many years ago while on holiday in the Alps and had been forced to concede defeat, preferring to keep myself injury-free to enjoy the holiday. However, I was determined to master it. It took many weeks, but eventually I could ride all the way up the street.
General manager, Hotel Du Vin & Bistro Newcastle
Worst Last year my Secret Santa present was a 2012 diary which had a total of six days use left in it. Apart from that I’ve been quite lucky to date.
Worst I’m a staunch Newcastle United fan and for some reason my mum’s aunt, who is in her 80s, thought it would be a really good idea to get me a Sunderland packed lunch box. That wouldn’t have been too bad if I was seven or eight - but I was 29!
Worst A WWF (World Wrestling Federation) calendar was given to me as a ‘joke’ present by an ex-boyfriend. Come February, it had lost its humour. I was a student at the time, so due to funds, the calendar managed to stay up the whole year. I had to explain ‘the joke’ every time someone came to visit me.
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Worst My husband’s parents once bought us a trip in a hot air balloon. The only problem is, I’m so terrified of heights that working on the ninth floor can be a bit much sometimes, so a hot air balloon was never going to be the best place for me to be. My husband ended up doing it on his own, and the worst thing was I had to tell them how great it was, without doing it.
Greg Bolton
Worst My worst Christmas present came about as a result of my own competitive nature. My wife bought Space Hoppers for the children and me so that we could race around the garden. Unfortunately, I found that I had lost whatever ability I may have had as a child to Space Hop and I was soundly beaten.
ADVERTORIAL
NORTH EAST INVESTMENT FUND Over £38m has been invested in capital projects in the North East LEP area in the last 14 months through the North East Investment Fund. The 12 successful projects which the fund has supported, have already created 1,486 direct jobs and safeguarded a further 427 for the area.
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North East LEP Board Member and Investment Panel Chair, Jeremy Middleton and Washington-based Hellens Group Chief Executive Gavin Cordwell-Smith
he £55m North East Investment Fund (NEIF) was set up last year by the North East LEP, with £25m Growing Places Fund and £30m from the Regional Growth Fund, as an evergreen loan fund to support projects that don�t have the necessary finance to get started. The fund provides loan investment to projects which encourage economic growth and create more and better jobs, and being an evergreen fund it’s able to recycle money to as many projects as possible. The fund has supported a wide spectrum of capital and infrastructure projects. From the £200,000 investment in Teal Farm Park Industrial Units, Sunderland to the £7m investment in South Shields regeneration, all the projects are about creating necessary infrastructure and space to allow businesses to grow. The wideranging remit of the fund means that it can be used where it is most needed to build the local economy and drive forward growth. Kick start to North Tyneside business park The North East Investment Fund saw its investment brought to life as work started on the first speculative business park scheme north of the Tyne since the credit crunch. Following a £460,000 loan from the fund to Hellens Group, the £2.6m West Chirton project, which will provide a 34,000 sq ft unit space for businesses close to the A19, was able to begin last month. Washington-based Hellens Group chose the North East Investment Fund to raise the loan because of the business park’s potential for job creation and business growth. It also received a £1.1m from the European Regional Development Fund (ERDF) and invested its own money into the project. Hellens chief executive, Gavin Cordwell-Smith said: �The banks aren’t lending for speculative property building even where there is a proven case and proven demand. The site is land we already owned and had bought pre-credit crunch to develop. The project was stalled for five years because we couldn’t get funding. It’s a very good location close to the A19 and just north of the Tyne
in association with
Tunnel, just off the Silverlink roundabout. The North East LEP’s help has been vital. Without it we wouldn’t be building the business park.� The investment in the business park at West Chirton is a great example as to the type of project the North East Investment Fund was set up to support. Jeremy Middleton, chair of the North East LEP’s investment panel, said �West Chirton is a well-located and wellthought out development, which will provide quality workspace for new and growing businesses in North Tyneside. It is creating jobs not only during the construction phases but though the jobs created once the park is occupied.
North East JEREMIE Fund extended The North East LEP continues to show its support to local businesses by boosting the resources available to support small and medium sized companies. Earlier this year the North East LEP was successful in a £7.5m bid to the Regional Growth Fund, to enable an extension of the current North East JEREMIE scheme. The success of the current JEREMIE fund, which is managed by North East Finance, shows the impact of providing much needed equity to enable knowledge based and start up companies to grow. It is anticipated that the £7.5m extension will bring in a total of £17.5m available funds as well as £19m private sector leverage, creating 700 new jobs and safeguarding 400. Jeremy Middleton, North East LEP Board said: “The decision to support the North East’s small and medium sized businesses with this contribution from the Regional Growth Fund is great news. This is an important time for companies seeking to take advantage of growth opportunities but who continue to see constraints on some forms of bank finance.
North East LEP The Stamp Exchange, Westgate Road, Newcastle upon Tyne, NE1 1SA Tel: 0191 222 3180 Email: info@nelep.co.uk
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Confidence Returning Mark Anderson talks to one of the region’s leading commercial banking teams about their success in lending to North East businesses and the expansion of their commercial team As I meet with Pat Dellow, Area Commercial Director for HSBC Bank, and members of her team their disposition is considerably sunnier than the weather outside, which had me ankle deep in water as I arrived at their Tyne & Tees Commercial Centre on the Team Valley Trading Estate, from which they service commercial banking clients from Northumberland to North Yorkshire. I spot a ‘tick list’ among her papers from the meeting, which seems to have a healthy number of ticks on it. “Yes, we are in a very positive place at the moment,” Pat told me. “We are on the right side of a period of uncertainty and recession. All areas of business have been impacted by the recession, but I see evidence that we, and our customers, have responded well to that and we are seeing growing levels of sustainable business, driven by sound companies looking to invest and expand.” I’m here to talk to Pat and her team about how companies access finance successfully on the other side of the worst, most sustained recession most of us can remember and suggest that the process must have changed significantly now. “What we offer may have changed,” says Pat “but the basics remain the same. We encourage any business that needs funding for, say, investment in new equipment, plant, premises or cashflow – the things that drive their businesses forward – to approach us early and involve us in the process. What we look for are a strong management team that have clear objectives and accurate management information. With that we can assess their needs and help them access the best possible finance options from within HSBC and, if appropriate, some of the Government-backed lending schemes.” One area where HSBC have been particularly successful has been helping clients access the Government’s Regional Growth Fund (RGF). The RGF is a £3.2 billion fund with the specific aim of lending to businesses that will, as a result of funding, create sustainable employment. The Tyne Tees area has used 24% of the national allocation of the Regional Growth Fund for HSBC. This has created or safeguarded over 240 jobs in the area with Grant funding being provided to 37 companies in the region. Ian Davidson is one of HSBC’s Business Development Managers within HSBC Equipment Finance and has been particularly successful in helping businesses finance new equipment that has helped them take advantage of clear opportunities. “There has been a 203% growth in equipment finance over the last nine months where we have included RGF Grant funding as part of an overall finance package,” explains Ian. “My role, and that of my colleagues, is to provide specialist guidance to a Commercial Manager for tailored equipment finance solutions. Together with the Commercial Manager, and other specialist Business Development Managers in for example Trade Finance or Receivables Finance, to be on hand to help management teams look at their requirements in the round and to point them at sources of funding they may not be aware of. Often the solution is a mix of funding, part loan, part match funded grant for instance, not a single source, and we need to take a
L- R: Ian Davidson (Business Development Manager), Jim McVee (Deputy Area Commercial Director) Pat Dellow (Area Commercial Director), HSBC holistic approach.” You will see two examples of the many companies HSBC are helping to grow through funding elsewhere on these pages, and HSBC’s confidence in the North East business community is further evidenced by continued investment in its team here. Jim McVee, a Scotsman by birth you will be unsurprised to hear, has recently relocated to the North East from London and taken up a new role as Deputy Area Commercial Director, supporting Pat and leading the North East commercial team. “I had no hesitation in relocating from the capital,” says Jim. “The North East is a fantastic place to live and work and I’m already seeing a lot of opportunity. As well as my own appointment we have added a new International Manager to strengthen our team supporting clients doing business overseas and helping them access our international network, and two Senior Commercial Managers to respond to requests for funding and commercial advice. That is a vote of confidence for the region and an indication that we see opportunity for growth and increased lending in the region.” About the Regional Growth Fund The Regional Growth Fund is a £3.2 billion fund designed to help companies in England to grow. So far £2.6 billion of funding has been allocated to support projects and programmes committed to deliver sustainable jobs and economic growth. Round 5 opened on 11 October and closes on 9 December. For more information, please go to www.bis.gov.uk/rgf
Maingate, Kingsway North, Team Valley Trading Estate, Gateshead, Tyne & Wear, NE11 0BE Tel: 0845 6076007
Techflow Flexibles Ltd Techflow Flexibles are market leaders in design manufacture and supply of flexible hoses , predominantly to the oil, gas and offshore industries. HSBC have played a major part in helping Techflow fund a move into a purpose built manufacturing facility and purchase equipment to service new contracts in the Far East. We work in a relatively buoyant sector,” says Managing Director Graham Clark “are competitive and wanted to expand to take advantage of a healthy demand
for our products.” The firm moved in to the new manufacturing facility covering an area of over 183,000sq in Cramlington, Northumberland in 2012. This year HSBC Business Development Manager Ian Davidson helped put together a funding package of nearly £2.5 million that included
funding from the Regional Growth Fund for new manufacturing equipment. “We were able to demonstrate that business was there and that the funding would create jobs,” said Ian “which was key to a successful bid for that portion of the funding”.
Emerald Biogas Ltd Emerald Biogas recently announced the opening of the North East’s first commercial food waste anaerobic digestion facility, utilising a proportion of the 800,000 tonnes of food waste generated across the region to generate renewable energy and fertiliser. The £8m facility, based at Newton
Aycliffe Industrial Estate, is the North East’s first commercial food waste facility, and will generate enough energy to power 2,000 homes each year. Crucial in this success was a £3.31m loan from HSBC, which was secured with the help of UNW Accountants in Newcastle and supported by law firm Ward Hadaway. “Emerald’s Directors, Antony Warren, Adam Warren
and Ian Bainbridge already had solid track records in animal by product, food waste collection, recycling and resource management businesses. Although this was a new venture their solid business and commercial track record and expert advice from UNW and Ward Hadaway meant that we had a credible business plan on which to approve lending.”
FINANCE
New team members Lloyds Bank Commercial Banking has strengthened its North East Mid Markets team with the appointments of Rory Whaling and Lee Watkins. Whaling joins as a business development director from Lex AutoLease, part of Lloyds Banking Group, where he spent 12 years developing opportunities to provide fleet management and associated services to companies across the North of England. Watkins has been appointed as a business development manager and previously spent seven years as a business manager at Barclays in the North East where he specialised in building relationships with, and securing new corporate customers. The pair will work to grow new client relationships with companies with sales in excess of £25m, providing a range of financing products and services to support firms’ expansion ambitions. Both will be based at Lloyds Bank’s Newcastle office. Mike Mullaney, area director at Lloyds Bank Commercial Banking in the North East, said: “Rory and Lee are highly experienced business development professionals, with great contacts and knowledge of the regional marketplace. “Their expertise will prove vital as we continue to provide financing solutions locally to help North East businesses unlock growth opportunities as the economy recovers, creating new jobs and wealth in the region.”
Jon Mabbitt, CEO Applied Graphene Materials
CASH BRINGS JOBS
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he £125m Finance for Business North East (FFBNE) fund is the most successful of its type in the UK. Since its launch in 2010, it has boosted the fortunes of the local economy and given companies the financial firepower to grow their business. The figures make for impressive reading. Also known as the JEREMIE programme, the scheme has provided debt and equity funding to almost 600 SMEs across the North East, creating or safeguarding nearly 3,000 jobs. It is firmly on track to meet original objectives to support 850 businesses, create more than 5,000 jobs and safeguard a further 2,800 jobs by the end of next year. Businesses across the North East have benefited from the seven-strong suite of funds, including Durham University spin-out company Applied Graphene Materials (AGM). The company, based in Wilton on Teesside, has received several tranches of
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money from FFBNE which has provided the catalyst for its recent growth and flotation on the Alternative Investment Market (AIM). Since 2010, FFBNE’s Proof of Concept Fund, managed by Northstar, has made four separate investments in AGM totalling £668,000. AGM has also received a substantial sum of money from the FFBNE Technology fund, managed by IP Group. The investments have enabled AGM to develop its revolutionary graphene products, which are used in a variety of applications including protective coatings, lubricants and even tennis racquets. Andrew Mitchell, chief executive of North East Finance - which manages the £125m FFBNE programme - says: “This illustrates how AGM is an excellent example of how FFBNE is meant to work in practice. “Several rounds of funding from the programme have made a significant contribution to AGM’s growth and development.
in association with
“The seven funds within FFBNE cater for businesses of all sizes, from fledgling start-ups to high-growth, medium-sized firms. “They have helped businesses in a wide range of sectors - including technology, manufacturing and renewable energy - and have provided a solution to many companies seeking to obtain alternative forms of finance.” To date FFBNE has provided more than £82m of direct investment in local companies and secured in excess of £91m of private sector cash to support deals from venture capital firms, business angels and other investors. It is providing vital support for firms at a time when they are still struggling to access affordable finance. According to a recent survey by the European Commission and European Central Bank, access to finance is the most pressing problem for 15% of UK-based SMEs - a problem which has been prevalent since the financial crash of 2008.
SUPPORTING UK BUSINESS
DREAMS I HAVE BIG
I JUST NEED TO MAKE THEM HAPPEN Lloyds Bank approve 80% of business loans. At Lloyds Bank we know the importance of supporting business growth. So not only are we saying yes to 80% of lending requests, we have more business mentors than any other UK bank to help your business grow. To find out how we are supporting businesses here in the North East, contact Rory Whaling on 07919 301645 or at rory.whaling@lloydsbanking.com lloydsbank.com/dreams
Any property given as security which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All lending is subject to a satisfactory credit assessment. We accept calls via Text Relay. Calls may be monitored or recorded. Please remember we cannot guarantee the security of messages sent by e-mail and these could be read by others. Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. 80% relates to period April 2012 to June 2013. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Licensed under the Consumer Credit Act 1974 under registration number 0004685. We subscribe to The Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk
FINANCE
Funding success Chirton Engineering has secured £200,000 from the Let’s Grow Regional Growth Fund (RGF) programme, keeping the company on course to double turnover within the next three years. North Shields-based Chirton will be using the money to help buy new machinery. It comes after Chirton’s success in the first round of the RGF when it created 19 new jobs. This time, the grant will create a further 16 jobs, bringing the total Chirton workforce to 69.
Time to act or miss out Time is running out for businesses to bid for up to £300m in the latest round of the Regional Growth Fund (RGF). Bids for the Round Five wave of cash from the £3.2bn fund have to be in by December 9, with winners revealed in spring 2014. The fund was created to help companies across the country create jobs between now and the mid2020s, with payment spread between 2011 and 2017. It is designed to support projects and programmes that are using private sector investment to create economic growth and sustainable employment. Following the June 2013 spending round allocation of a further £600m to the RGF, the round five was opened for bids.
STEEL SHINES Icon Plastics has secured Tees jobs with a £200,000 steel investment. The package, from UK Steel Enterprise, means specialist precision injection moulding company Icon has been able to buy new premises to keep its manufacturing base in Teesside, securing skilled jobs. Icon will move into its own premises in Stockton-on-Tees before the end of the year, on a two-acre site that gives the firm scope for continued expansion.
It means the jobs of the existing 32-strong workforce are secure and at least another 10 jobs are expected to be created within two years. The investment, from the Tata Steel business support subsidiary, is made up of a £100,000 loan and a £100,000 grant from UKSE’s Access to Finance scheme, backed by the government’s Regional Growth Fund. The company is also receiving financial support
FINANCE BOND Graham Clark, Techflow Marine, Lesley Telford, Barclays, Karen Gant, Barclays and Jonathan Leonard, UKEF
Barclays has provided Cramlington-based Techflow Marine with help to win a major new contract in China. The bank gave Techflow performance guarantee and warranty bonds through the UK
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Export Finance (UKEF) Bond Support Scheme, which is focused towards SMEs to help them win transformational overseas contracts. The bonds issued were
in association with
from its bank HSBC and was advised on the acquisition of the new premises by the Tees-based business law firm Endeavour Partnership. Icon managing director Gareth Thomas says: “This investment is hugely important as we could not have purchased these premises without it. The alternative was to downsize and outsource our manufacturing abroad. But now we can secure and create jobs here.”
10% each of the £3.6m contract Techflow secured with Chinese National Offshore Oil Corporation. It is the biggest contract Techflow has won to date in China and involves the design and installation of a system to support oil movements from ship to ship. Graham Clark, a director of Techflow Marine, says the scheme bridged a financial funding burden, stimulating the company to bid for global business at a greater pace than previously possible. Jonathan Leonard, export finance adviser with UKEF, described the move as an excellent example of how UK Export Finance can help SMEs win business abroad.
Funds in focus The Finance for Business North East Fund has helped almost 600 SMEs since it was launched in 2010. To find out which fund could benefit your business, take a look at the summaries below
GROWTH FUND – NEL FUND MANAGERS: The Growth Fund assists relatively mature companies at the development and growth stages. Companies that benefit from the fund are mostly revenue generating and seeking growth capital of up to £750,000. A significant proportion of the money from this fund is invested as mezzanine loans: loans with a profit-share and/or share option arrangement. It is managed by NEL and has invested in almost 60 companies. For further information, please visit www.nel.co.uk
ACCELERATOR FUND NORTHSTAR VENTURES: One of two FFBNE funds managed by Northstar Ventures, the Accelerator Fund invests in high-growth early stage businesses with investments ranging from £100,000 to £750,000 in a first round of funding – up to £2m in any one company overall. Investments are generally equity-based and are often syndicated with private sector investors. Debt or quasi-equity investments are made where appropriate. Northstar has been inspiring local entrepreneurs with financial backing and the expertise of a highly experienced team since 2004, investing in almost 50 pioneering, high-potential enterprises. For further information, please visit www.northstarventures.co.uk
ANGEL FUND RIVERS CAPITAL PARTNERS: The Angel Fund is managed by Rivers Capital Partners and invests in start-ups and existing businesses with growth potential. It is not biased towards any specific sector. The fund generally invests between £10,000 and £150,000 but has the ability to attract significantly more capital from co-investors. The fund is
actively engaged with investors, both institutional and business angels, in the North East as well as London and the South. Rivers Capital Partners brings together more than 50 years of direct investment experience in the creation and growth of companies in markets from technology to design. For further information, please visit www.riverscap.com
TECHNOLOGY FUND IP GROUP: The North East Technology Fund is managed by IP Group and is aimed specifically at the technology and innovation sectors. The fund supports technology businesses at any stage of their development with investments made principally to address the demand for seed and development stage finance. Funding is available up to a maximum of £1.25m with the fund also securing private finance from co-investors, business angels and venture capital institutions. The fund also invests in more mature companies seeking mezzanine finance. IP Group offers more than traditional venture capitalists by providing its companies with access to business building expertise, networks, recruitment and business support. For further information, please visit www.ipgroupplc.com
GROWTH PLUS FUND FW CAPITAL: Targeted at mature companies, the Growth Plus Fund deals with businesses across most sectors looking for development and growth funding, dealing specifically with those needing a significant cash injection to facilitate a step change in their business. These companies are mostly revenue generating. The Growth Plus Fund typically provides larger funding packages than the North East Growth Fund - investing in the region of half a million pounds in each business up to a ceiling of £1.25m. For further information, please visit www.fwcapital.co.uk
MICROLOAN FUND ENTRUST: This fund supports the creation of new enterprises and the growth of existing micro and small businesses across the region. It aims to stimulate the creation of new business and secure jobs in the North East. Loans of between £1,000 and £25,000 are made to new and existing businesses that are operating in eligible sectors and are finding it difficult to secure mainstream finance. Established in 1982, Entrust is one of the oldest business support organisations in the country and works with clients across all industry sectors and at all stages of development, from pre-start ventures through to established and growing businesses. For further information please visit www.entrust.co.uk
PROOF OF CONCEPT FUND NORTHSTAR VENTURES: The Proof of Concept Fund invests at the seed stage in the technology sector – particularly in high-growth areas such as clean-tech, digital and healthcare. Initial investments made are up to £100,000 with follow-on funding available where appropriate. Northstar works closely with entrepreneurs, regional universities, technology start-ups and networks to develop new high-growth businesses. Northstar’s experienced team is always keen to hear from entrepreneurs looking to develop their businesses and succeed. For further information, please visit www.northstarventures.co.uk
For more information on any of these funds, please visit our website at www.northeastfinance.org.
Tel 0191 211 2300 Fax 0191 211 2323 www.northeastfinance.org
ADVERTORIAL
“WE’RE ALL IN” - ARE YOU?
Simon Davis, an independent employee benefits consultant at Easby Gale & Phillipson, explains why employers need to prepare for automatic enrolment and understand the risks of not doing so
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Simon Davis, employee benefits consultant at Easby Gale & Phillipson
ou’ve probably already seen or heard one of the many “Workplace Pensions: We’re all in” adverts, which are appearing on TV and radio at the moment. The adverts are part of a National auto-enrolment initiative, which aims to ensure all UK employers are able to offer a workplace pension, and automatically enrol their workers into it, by 2018. Although we’re only a few months in to this five year workplace pensions roll-out plan, the Department for Work and Pensions is already estimating that over one million people have already been enrolled into company pension schemes as a result of the Auto-enrolment initiative. As an employer, you will need to understand your automatic enrolment duties, the impact on your business and the changes you’ll have to make. There are requirements for employers before, during and after Automatic Enrolment and heavy penalties for noncompliance, which can all bring an additional burden on resource within your business. As an employer, there are three main points to consider: • The issue of compliance - Irrespective of how many people a business employs, doing nothing is not an option. Employers will have to comply with auto-enrolment, and we’d very much advise against leaving it to the last minute. There is bound to be a backlog of schemes waiting for paperwork to be completed on the relevant ‘deadline day’ and some providers have even said they will not accept applications where there is limited lime left to the company staging date. This may force a business into a pension scheme that may not be suitable for the workforce. • The administrative burden - especially for employers with a high staff turnover. There are going to be some sectors of the economy where the administrative burden of auto-enrolment will prove a serious headache. I would recommend all employers make sure their payroll and HR procedures are ready for auto-enrolment. • Cash-flow considerations – perhaps not immediately, but for many employers adding a 3%
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pension contribution to payroll costs by 2018 (plus the cost of administration) will be significant. Starting with larger employers, medium sized employers (50-249 employees) will have to start complying from April 2014 and employers with 49 or fewer staff will start to fall into the net from June 2015. To begin with, the contribution levels required by auto-enrolment will be relatively low, starting at typically 2% of an employee’s pay (with the contribution split equally between the employer and the employee). Initially, the Government’s focus is on making sure everyone is enrolled in a pension scheme. But the minimum contribution rises quickly, so that from October 2018 it is typically 8% of an employee’s pay. If you haven’t already, it’s worth looking on The Pensions Regulator website to find out when your staging date is (the date the new automatic enrolment duties come into force for your business), and most importantly, it’s the date this becomes a legal requirement for you. Even if you have an existing staff pension scheme in place, you’ll need to review your current pension arrangement to ensure it qualifies as an automatic enrolment scheme, as it may need to be amended to meet the criteria for a qualifying scheme under the new law. Don’t under-estimate the steps involved and the timescales required to sort everything out in that time. On average, it’s taking employers I’m working with around 6 months to meet the new requirements, taking time to amend existing payroll processes, put in place new record keeping and reporting requirements, and building in time to communicate with their workers to ensure they get the right message across.
Tel: 01609 760 960, Trinity House, Thurston Road, Northallerton DL6 2NA
Law
www.sintons.co.uk
HIGH QUALITY
PARTNER LED
LEGAL
advice with exceptional Employment Law Protection Assero is a package that, for a fixed fee, gives your business protection and peace of mind on all employment matters. For further information, please visit: www.sintons.co.uk/business/employment or contact:
PERSONAL
SERVICE
Keith Land, Partner 0191 226 4892 keith.land@sintons.co.uk Stephen Jones, New Business Manager 0191 226 3790 stephen.jones@sintons.co.uk
Law
www.sintons.co.uk | Personal & Family | Business | Defendant Litigation | Healthcare Sintons LLP, The Cube, Barrack Road, Newcastle upon Tyne, NE4 6DB.
Sintons LLP is authorised and regulated by the Solicitors Regulation Authority.
ADVERTORIAL
SALARY SACRIFICE AND AUTOMATIC ENROLMENT PENSION SCHEMES A year on from the introduction of pension auto-enrolment, over two million people were already automatically enrolled by October 2013 and numbers will rise dramatically as we move into 2014
B
Nick Clynes (top) Peter Gomersall (bottom)
etween April and June next year, it is expected that 10,000 employers a month will reach their staging date, an unprecedented rise in the number of employers enrolling employees into a workplace pension arrangement. Over the last 12 months, Grant Thornton has supported a large number of employers through the auto-enrolment process and gained a valuable insight into the challenges and opportunities that lie ahead. “For most employers, auto-enrolment represents a significant change from providing a benefit targeted towards attracting and retaining more valued employees to a compulsory cost of labour which is administratively cumbersome and has significant penalties for noncompliance,” explains Nick Clynes of Grant Thornton’s employer solutions team. “Compliance with auto-enrolment duties has proved to be a challenge even for the largest employers and will be no less onerous for the small to medium sized employers who will reach their staging date over the next year. However, they will benefit from the experience of the larger employers who, having now been through the process, have helped establish a more defined application of the legislation. “In addition, third party providers of Payroll and HR services are now more prepared and have developed their auto-enrolment solutions to a point where employers can access proven solutions. The key issue is that employers should investigate in detail the solution that can be provided by their service providers as these can differ widely.” Most employers who currently offer a pension plan expect to rely on this to comply with auto-enrolment duties. However, the provider market has changed dramatically, with traditional providers actively reviewing the terms they are prepared to offer to auto-enrolled members, compared to the existing pension plan population. In some cases, providers are refusing to offer terms to employers where they do not consider the profile of the workforce to be an attractive commercial proposition. Employer support under pressure Mr Clynes adds: “The increase in the number of
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employers entering the staging process means that pension providers are less able to support employers in assessing and communicating with the workforce as capacity is squeezed. We are now seeing providers introducing charges for auto enrolment support, where previously they had not. Employers should ensure that their current provider is willing to continue to honour the current terms. Be warned that support required from the provider to complement any internal payroll or HR systems may well be offered at an additional cost which will need to be budgeted for. We can support employers of any size through the process of autoenrolment to ensure they implement the right solution for their needs, mitigating any risk of non-compliance and offering a competitive savings vehicle for members to provide for their retirement.’ Peter Gomersall also in the Grant Thornton employer solutions team says “whilst considering auto-enrolment, businesses that have not previously considered or implemented salary sacrifice arrangements for pensions are now using the opportunity to do so. The introduction of these arrangements can result in significant savings for both the employer and the employee.” Savings are achieved by restructuring the way that member contributions are paid to the pension scheme. Normally, pension contributions made by employees by deductions from their gross pay are subject to employer and employee NIC. In contrast, following the introduction of a salary sacrifice arrangement, the employer would make additional employer contributions which would not be subject to NIC.’ With considerable experience of successfully implementing salary sacrifice schemes, Grant Thornton has introduced them in respect of a variety of pension arrangements, tailoring the arrangement to each employer’s specific needs.
Earl Grey House, 75-85 Grey Street Newcastle, NE1 6EF Tel: 0191 261 2631
PENSIONS
Your questions answered
Catherine McNulty of Sinton's employment team explains the new legislation on pensions
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ew legislation came into force in June 2012 which will eventually oblige all employers in the UK to automatically enrol certain workers into a pension scheme and make contributions towards it. The practical arrangements for this are not as straightforward as the Government would have us believe and the need for careful preparation shouldn’t be underestimated. Q What is auto-enrolment? New duties require employers to automatically enrol eligible jobholders into their own qualifying pension scheme or the National Employment Savings Trust (NEST), a government saving scheme. They also require employers to make contributions which will gradually increase, from 1% to 3% by 2018. Q What will your obligations be? From the date you become subject to the new duties your “staging date” - you will have to enrol eligible jobholders (www.practicallaw. com/2-521-1968) in an automatic enrolment scheme (www.practicallaw. com/4-521-1745), unless a jobholder is already an active
member of a qualifying scheme you run. That may sound straightforward but there is more to it. You will need to: review existing pension arrangements to ensure these meet designated requirements amend your current pension arrangements or implement an appropriate alternative scheme determine whether workers are eligible jobholders, non-eligible jobholders or entitled workers auto enrol eligible jobholders, provide them with mandatory information about auto-enrolment and pay mandatory minimum contributions towards their pension provide non-eligible job holders with information about their right to opt-in to the scheme and, if they do, make minimum contributions on their behalf provide entitled workers with information about their right to join a non-contributory scheme re-enrol eligible jobholders every three years update practices to ensure you don’t fall foul of safeguarding duties keep mandatory information
about arrangements regularly review those who are or may become eligible alter contracts of employment and other relevant documents to ensure compliance and best practice Q What is an automatic enrolment scheme? Eligible jobholders must be enrolled in an automatic enrolment scheme unless they’re already active members of an employer’s qualifying scheme. In order to be an automatic enrolment scheme, a scheme must not contain any provisions that: prevent you, as the employer, from making the required arrangements to automatically enrol, opt in or re-enrol a jobholder by including, for example, an age restriction or
require a jobholder to express a choice in relation to any matters, or provide any information, to remain an active member of the pension scheme such as requiring an employee to complete an application form or give consent to become a member For a UK pension scheme to be qualifying it must be an occupational or personal pension scheme, be tax registered and satisfy minimum requirements. Q When will your business be affected? The new duties are being implemented month by month over a five-and-a-half year period that started in 2012. All UK employers have been separated into bands according to size, and each band has been assigned a date from which they will be
When it comes to auto-enrolment, we speak in a way that is crystal clear. Our expert pensions and employment team can provide advice on the scope of your automatic enrolment duties and their implications.
Contact Nick Smith at nsmith@mincoffs.co.uk or call 0191 281 6151 to find out how Mincoffs Solicitors can help. www.mincoffs.co.uk
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 51
three ways to get your business noticed
NECC: Making the North East a succ ess DECEMBER 2013 - JANUARY
DECEMBER 2013 - JANUA
RY 2014 necc.co.uk - necontact.co.uk
2014
Tea for you
Ringtons is brewing up for growth
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MODERN MANORS
FERRY FAYRE
How to make a stately home pay its way
Lunch on board with DFDS
PROFILE
t.co.uk
necc.co.uk - necontac
FAMILY AFFAIR Nasser Din: Business is in the
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Print: 7,500 magazines distributed on a bi-monthly basis to businesses across the region Online: An online companion to Contact, available 24/7 to an even wider audience Email: An e-bulletin sent to 5,600 NECC members every two weeks To discuss how to communicate effectively with these audiences contact offstone publishing on 01661 844115, or email sales@necontact.co.uk
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PENSIONS PAYE scheme size
Staging date
1000+
Auto-enrolment should now be in place dates ranged between 1 October 2012 and 1 October 2013
501 - 1000
Auto-enrolment should now be in place - dates ranged from 1 October and 1 November 2013
251 - 501
Between 1 November 2013 and 1 February 2014
101 +250
Between 1 February 2014 and 1 May 2014
51-100
Between 1 May 2014 and 1 April 2015
50 and below
Between 1 April 2015 and 1 April 2017. Dates for employers with less than 30 employees depend on PAYE reference numbers.
New businesses have staging dates at the end of the overall timetable, up to 1 February 2018. obliged to start autoenrolment processes. Larger employers have been obliged to start before smaller ones. Which band you fall into depends on the number of workers in your PAYE scheme as of April 1, 2012 (if you operate a single PAYE scheme). If you operate more than one PAYE scheme, your staging date is determined by your largest PAYE scheme as at April 1, 2012. The Pensions Regulator has a useful tool on its website which enables employers to find out their exact staging date. However, as a guide for NECC members the following will be useful although employers still need to check their dates (see table, above). Q Can you vary your staging date? As a general rule employers cannot contract out of, or delay, auto-enrolment. However, there are some sets of circumstances in which employers can vary these dates: Employers can choose to bring their staging dates forward by notifying the Pension Regulator and obtaining the agreement of their pension scheme trustees
or manager. Employers with fewer than 50 workers on 1 April 2012 who had (or were part of) a PAYE scheme with 50 or more persons on that date can choose to defer their staging dates so they run from August 1, 2015 to April 1, 2017. Employers in this position are likely to include those with non-workers such as pensioners within their PAYE scheme. Employers who use a Defined Benefit scheme or hybrid scheme for auto-enrolment can delay auto enrolment until 30 September 2017 for existing jobholders who are already active members of the scheme, or have the right to join, on its staging date. However, using this transitional regime does not delay an employer’s staging date and new joiners will still have to be auto-enrolled. Q What if you don’t comply? Compliance with the new legislation is policed by the Regulator. Breaching the new duties could result in compliance notices and penalties that vary according to your size. Large employers that don’t comply could be liable for escalating penalties of £10,000 a day.
ADVERTORIAL
ARE YOU READY FOR AUTO ENROLMENT?
The new rules regarding workplace pension schemes came into force on 1st October 2012. Over the next few years all employers will need to comply with the rules, or face penalties ranging from £50 to £10,000 per day!
E
mployers are faced with many duties in the planning, implementation and on-going maintenance of a workplace pension scheme. There is a lot to consider during the build-up to Auto Enrolment. We have put together 10 key questions every business should know the answer to:
7. What is NEST? NEST is a qualifying pension scheme to support auto enrolment and may provide a solution to those who are unable to organise a scheme, but it is not always the best solution and can mean lots of additional administration time for an employer.
1. Know your staging date If you are within 12 months of your staging date you should already be planning for auto enrolment. Some pension providers will not offer schemes within 6 months of a staging date. They consider it to be insufficient time to address all of the actions required.
8. What are the alternatives to NEST? Viable alternatives are ‘The Peoples Pension’ and ‘Now Pensions’ which could be a better option if your business is unable to secure a scheme elsewhere.
2. Is your current scheme compliant? Many pension schemes are not auto enrolment compliant and will need to be reviewed and / or amended.
9. How do you deal with leavers, joiners and “opt outs”? Auto enrolment is an on-going compliance issue not just an initial set up process. Those who opt out need to be opted back in after 3 years. What’s your strategy for on-going administration?
3. Auto enrolment is “opt out” not “opt in” Eligible employees will have to be automatically enrolled into a workplace pension scheme. 4. Pension providers can ‘cherry pick’ schemes Pension providers are businesses like any other and want to work with the better quality schemes. If you don’t start planning early you may find that you are left with few options. 5. How will you communicate the changes to your workers? Not explaining the process and impact to workers can cause lots of employment issues. For example, how will staff react if pension contributions replace an expected pay rise? If your staff doesn’t understand the changes then this could have a very negative impact. 6. How much will auto enrolment ‘cost’ per employee? Employers can reduce costs by identifying the lowest measure of qualifying earnings that are pensionable and by using salary exchange to reduce employers NIC.
10. Are you prepared for all the administrative duties? You are faced with over 200 duties in relation to all aspects of auto enrolment. The additional admin costs and the financial implications of getting it wrong can be huge.
Ian Marsh is an Employee Benefits Consultant at Tait Walker Wealth Management, a trading style of Tait Walker Financial Services Ltd who is authorised and regulated by the Financial Conduct Authority.
Tel: 0191 285 0321 Email: Ian.marsh@taitwalker.co.uk Web: www.taitwalker.co.uk
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 53
HI! TECH
Fly the dream Mark Anderson finds the perfect present for sci-fi aficiandos
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ver since Sean Connery donned a handy jetpack he’d had strategically positioned on the balcony of the bad guys’ evil chateau in Thunderball, zooming over the rooftops before packing it into the boot of the DB5 and making good his escape, I’ve had one on my Christmas list. But that jetpack was for his eyes only. Jango Fett had a pretty nifty one in Star Wars, but of course that was ‘a long time ago in a galaxy far, far away’. But in 1984, when some dude stole the opening show of the Los Angeles Olympics whistling across the stadium in one, I really thought we’d all be popping down to the shops on one by now. It’s 2013, so where’s my jetpack? Well here it is! The New Zealandbased Martin Aircraft Company is just months away from delivering the vehicle in our picture. Named as one of Time magazine’s Top 50 inventions in 2010, the Martin Jetpack is the world’s first practical jetpack, set to
revolutionise the industries of aviation, recreation and transport. Martin Aircraft Company is currently focusing on developing the Martin Jetpack for use as a first responder vehicle and a heavy lift unmanned air vehicle. Following the successful introduction of the jetpack into the first responder community, the company will work on developing a gizmo for leisure and personal use. With flight capability of over 30 minutes at speeds up to 74 km/h at altitudes above 800 feet this will cut my commute down to 10 minutes. Happy Christmas, me!
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ADVERTORIAL
£6000 AD-WORD FRAUD COULD HAVE BEEN AVOIDED Has he been yet?
Santa Claus is coming to town, and thanks to the North American Aerospace Defense Command (NORAD) - which usually tracks aircraft for the military - you can watch his journey around the world. According to the Santa Tracker website, NORAD uses the heat signature from Rudolph’s nose to find Santa’s current position. “Only Santa knows his route, which means we cannot predict where and when he will arrive at your house,” they explain. “We do, however, know from history that it appears he arrives only when children are asleep!” Your kids will love it! noradtracker.com
Incoming!
Remote-control aircraft were a Christmas disaster when I were a lad. Starting the glow plug engines by turning the propeller usually involved a trip to A&E to have fingers sewn back on and the controls were so vague and unreliable that, even if you did get it aloft, your craft was soon smashed into the ground, stuck in a tree or heading for France. Things have moved on and this year my daughter, whether she wants one or not, is getting an RC helicopter so nimble I’ll be able to use it to distribute twiglets to guests before shooting them with rockets. buzzflyer.co.uk
May the force be with you
One of my fondest Christmas morning memories is of battling with my brother on the landing at 3am after discovering Santa had left a pair of light sabers at the foot of our beds. This was circa 1980 and the technology consisted of a torch with a plastic tube gaffer taped to it. They were fun, but in reality a bit rubbish. Today, hi tech sabers feature LED-lit crystal tubes and motion-sensor driven sound effects. And yes, you CAN get the double ended one Darth Maul wielded in the first prequel. ultrasabers.com
Season’s greetings
The Bishop of Hertford got his cassock in a twist recently, calling on well-wishers not to abandon traditional cards for messages on electronic cards or sites such as Facebook or Twitter. Bishop Bayes said: “I love technology and social media and I use it a lot. However, it can be a bit impersonal and frankly sometimes a bit cold.” The move to e-cards has damaged the incomes of charities who produce Christmas cards, so use this site or a similar one to ensure they get a donation. charity-ecards.com
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e had an interesting case referred to us recently. A startup company, in a regulated industry, found that its spending on Google AdWords was increasing every month because of an unexpected number of click-throughs, often several hundred in a single day, to a point where the company was in danger of going bust. Forensic analysis of their own website records showed that most of the clicks on the ads were coming from a very small group of related IP addresses. At this point, they called on our services help tracing the exact location of the culprits. Tracing IP addresses is a common technique that we use when dealing with any type of Internet activity and the most basic trace can be carried out in a few minutes. In this case, we discovered that the addresseses were registered to a local authority and most likely associated with council offices or public libraries. After a little bit of correspondence, it was established that the address were allocated to a particular library. Since no-one seemed able to establish which, if any, laws were being broken the victim company chose to send in a private investigator to see if they could observe someone clicking on the AdWords links to drive costs up. Within 48 hours of the IP trace being carried out, the investigator caught the culprit. One of the startup company’s competitors was clicking on the links, and links advertising other competitors, to try to put them all out of business by draining their bank accounts. In fact, the culprit also worked in the same industry and is now facing an investigation by their regulator and faces the possibility of being struck off for professional misconduct. In the space of a few months, this person had cost at least one company an estimated £6k in fraudulent clicks. If only we’d been called in earlier, we could have saved most of this loss.
Angus Marshall is a director of n-gate ltd., a firm which specialises in solving “interesting” forensic science problems. He is also a registered expert adviser to law enforcement agencies and the UK’s principal expert on digital evidence to the ISO Information Security committee. Tel : 0870 1998 506 email: contact@n-gate.net
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 55
OUT TO LUNCH
Pushing the boat out Everything is ship-shape and more on board DFDS King Seaways, as Alastair Gilmour discovers
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e’re in the bowels of a 31,000-tonne car ferry which has only recently disgorged its cargo of 600 vehicles. Its great jaw-like doors remain wide open and this lower deck chasm is vast and empty. For whatever reason, the scenario reminds me of a James Bond movie where any second now an Aston Martin will scream out of the far darkness being shot at by pursuing villains. To compound this illusion, the guy ushering me into a lift is taller than tall, immaculately groomed in a well-tailored dark suit, folding Ray-Bans into his top pocket. Max Foster has such a commanding presence and an engaging air he could be Bond, James Bond. His toes will curl at the thought, but I’m sure he’s heard it before. German-born Foster is passenger director of DFDS Seaways. The North Shields to Ijmuiden route comes under his remit and it’s obviously the North Sea and English Channel crossing he favours from his personal file as he rarely misses the opportunity to talk it up - a £4m
investment in onboard facilities and the installation of new, energy-saving propellers; a record number of passengers this summer, including more than 65,000 in August alone and heading for a route record of 570,000 for 2013 (which includes 20,000 Dutch and German football fans eager to watch our two Premier League sides). Foster is also an ambassador for the North East. “Newcastle is a city that is so enormously underestimated by people who have never been here,” he says. “Before I came here I thought it was so far north it must be close to the Polar Circle. I thought it must be raining every day, it must be very poor and it must be very cold. “But when I came for the first time I was so impressed by its variety and by its beauty. Newcastle is a cool city. It’s not Paris, but it has something metropolitan about it. It might be the bridges, the architecture and the outgoing people, or the history, the nature and the cultural diversity. They are all very special and that’s what we at DFDS are trying to
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We have great cooks on board and our own butchers downstairs
tell people. We are very proud of this route.” We’re lunching on board King Seaways and as we’re tied up at Port of Tyne, North Shields, with another four hours until its departure to Amsterdam, the Blue Riband Restaurant is deserted. We feel privileged because it’s not even officially open (that’s what you get from dining with secret agents) but it won’t be like this once the ship’s 27-metre width eases between the Tyne’s north and south piers and reaches 27 knots. The situation also gives me time to listen to Max Foster address the chef in Danish and our waiter – Bonifacio Almazan, a man with 30 years’ DFDS service – in Filipino. I bet he could talk to Ernst Stavro Blofeld in Polish. “We have great staff here,” he says (in English, puncturing the reverie) as we eye up the starters of rillette of duck – tiny succulent strands melded into a paté and rolled into a ball – with tuna tartare, seafood salad, beetroot vinaigrette and Danish pork paté. Alongside that, there’s a “King” starter - a small glass of roasted onion, homemade mayonnaise, dried tomatoes and sweet onion relish. “This looks so beautiful; there’s an earthy taste to it,” says Foster. “This is normal, every guest can order this. We always have seasonal dishes and a couple of Danish dishes. “We have great cooks on board and we have our own butchers downstairs who cut the carcass up exactly as we want it. We also bake our own bread.” Max Foster wears two DFDS hats. The passenger director headgear takes responsibility for the company’s four Channel routes to Dunkirk and Calais, plus Portsmouth to Le Havre and Newhaven to Dieppe. The other is managing director of the UK sales agency, which takes in Newcastle to Amsterdam, Harwich to Ebsjerg, routes in Scandinavia and into the Baltic Sea from Germany to Lithuania – Kiel to Klaipeda. Our Tornados Rossini arrives. It’s
a presentational work of art – grilled tenderloin of beef served with roasted fois gras, fresh truffle, sautéed potatoes, spring onions, mushrooms and fried bread. It is simply stunning; dining of an extremely high standard and equal to anything available ashore in this kingdom (and three courses can be pre-booked online from £31.20). Foster reveals that the steak is imported from Nebraskan prairies – fresh, not frozen - “so you’re ordering something great to start with”. But he also admits that it’s something that comes with a price. He says: “The product we’re selling here at DFDS isn’t a pair of sneakers or stereo equipment, it’s an experience. What price tag do you put on an experience? “To be able to provide a service at a good price we can’t go out and spend several hundred millions on building new vessels, so we have to differentiate ourselves. “If we call the vessels the hardware then it’s the software – outstanding service and excellent meals – that make the difference.” DFDS Seaways is also hooked on cultural activity. A couple of years ago the NewcastleGateshead EAT! Festival took space on board a mini-cruise with markets, tastings and displays. More recently, the company was involved in the Foghorn Requiem which marked the disappearance of the foghorn from the UK’s coastal landscape, and the Sunderland Airshow – both events viewed from water – plus a co-operation with the Whitley Bay Film Festival. “We’re bringing a lot of value to the region – seven out of the first nine months of 2013 broke records on this route – in volume, turnover and specific areas. There are a lot of things to try to keep visitors in the North East before they go off to Scotland or wherever.” The DFDS Seaways message is “The Gateway to Europe” and its onboard Blue Riband Restaurant undoubtedly lives up to that cultural and culinary diverse promise.
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 57
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PROMOTIONAL FEATURE: LUNCH THE CROFT HOTEL
DABBAWAL
HOTEL DU VIN
MARCO PIERRE WHITE STEAKHOUSE BAR & GRILL
Reopened in February 2013 following extensive refurbishment and under new management, The Croft Hotel now boasts a new Gastropub, private dining room, traditional Tea Rooms, extensively refurbished function/conference suites and 20 bedrooms. The Croft Gastropub is the perfect venue for a business lunch with our highly competitive Market Menu available between 12-2pm every week day. Just £12 for 2 – courses.
Dabbawal, street food pioneer of the North East, brings the amazing tastes of the street to its two restaurants in Newcastle, featuring unique tapasstyle plates for sharing and classic dishes with a twist. Larger parties can hire the whole restaurant on a Sunday for Indian cocktails, canapés, a feast of dinner and dancing. Smaller groups of up to 20 can also take over Dabbawal’s private room and the Dabbawal team delights in coming to you to cater for parties large and small.
This festive season there will be Christmas Market & Shopping packages, overnight breaks for Christmas or New Year, a party menu, Christmas Day and New Year’s Eve menus. Book to dine with us throughout the festive season and you will be entered into win our drinks hamper which includes 12 bottles of our chosen wines, Champagne, as well as fortified wines and a bottle of Scottish whisky.
The Steakhouse Bar and Grill Express lunch is £18 and includes two-courses and a glass of wine (quote NECC). If you haven’t got much time out of the office try the Marco in Minutes express lunch two-courses and a glass of wine for £18 and you should be back at your desk within the hour. If a leisurely lunch is more your thing, that’s always available, too.
LOCATION: The Croft Hotel Croft-on-Tees Darlington, DL2 2ST Tel: 01325 720319 www.crofthotel.net
LOCATION: 69-75 High Bridge, Newcastle, NE1 6BX Back Brentwood Ave, Jesmond, NE2 3DG Tel: 0191 2325133 www.dabbawal.com
LOCATION: Hotel du Vin, Newcastle City Road Newcastle, NE1 2BE Tel: 0191 2292200 www.hotelduvin.com
LOCATION: Marco Pierre White Steakhouse Bar & Grill, 2-8 Fenkle Street, Newcastle NE1 5XN Tel: 0191 300 9222 www.mpwsteakhousenewcastle.co.uk
PEACE & LOAF
ROCKLIFFE HALL
SACHINS
NATIONAL GLASS CENTRE BRASSERIE
As the latest addition to the north east’s fine dining industry, Peace & Loaf boasts a chic and stylish venue alongside an entirely original and unique dining experience. With the meticulous eye of head chef and runner-up of 2010’s MasterChef: The Professionals Dave Coulson, Peace & Loaf’s menu is inspired by traditional British cuisine with new ideas. The carefully crafted dishes will both excite and intrigue even the most discerning of palates.
Head to Rockliffe Hall this December to enjoy all of your festive favourites using the finest ingredients sourced right on our doorstep, served in imaginative ways. Our flagship December dining experience comes in the form of our Orangery festive tasting menu (£65). Alternatively opt for a delicious 3-course lunch in The Orangery (£21.50) or The Clubhouse (£24.50) – a perfect way to celebrate with friends and colleagues.
Celebrating almost 30 years in service, the award winning restaurant Sachins on Forth Banks in Newcastle has been delighting diners with their signature, meticulously crafted menu since opening its doors. Using only the freshest, locally sourced ingredients, chef and proprietor Bob Arora perfectly balances his dishes; a skill learned from years in the profession, which many other restaurants do not offer, truly offering Punjabi perfection.
Eating at the Brasserie is as much about the atmosphere and stunning surroundings as it is about the food. Having undergone a stylish transformation, from the décor down to the tableware, the Brasserie stands out as one of the most attractive restaurants in the North East. Echoing the philosophy of National Glass Centre, the menu showcases heritage and innovation, delivered with creativity and passion. Open Daily: 10.00 – 17.00
LOCATION: Peace and Loaf, 217 Jesmond Road Jesmond, NE2 1LA Tel: 0191 281 52 22 www.peaceandloaf.co.uk
LOCATION: Rockliffe Hall, Hurworth-on-Tees, Darlington, County Durham, DL2 2DU Tel: 01325 729999 www.rockliffehall.com
LOCATION: Sachins, Forth Banks, Newcastle upon Tyne, NE1 3SG Tel: 0191 261 90 35 www.sachins.co.uk
LOCATION: National Glass Centre Brasserei, Liberty Way, Sunderland, SR6 0GL Tel: 0191 515 555 www.nationalglasscentre.com
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APPOINTMENTS
Joanne Pratt, fund manager; Chris Johnson, investment executive; Nicky Atkinson, investment executive
IN THE MONEY
FW Capital, the company which manages the Tees Valley Catalyst Fund, has appointed a team of three to spearhead its investment operations from its new Billignahm office. Launched by Tees Valley Unlimited (TVU) at the end of June, the £10m Catalyst Fund provides Tees Valley businesses with short-term finance to fund performance and warranty bonds. It is anticipated that it will unlock almost £700m of additional work and support some 1,440 jobs in the Tees Valley over the next ten years. FW Capital’s Fund Manager, Joanne Pratt has recruited investment executives Nicky Atkinson and Chris Johnson to make investments from the Government-backed fund.
TAKING THE CHAIR
RTC North has appointed Bob Paton non-executive chairman with a remit to help drive strategy and support the operational team at the business growth and innovation services company. His day job is MD of the Accenture Delivery Centre in the North East - a global management, consulting, technology services and outsourcing company.
HOME SWEET HOME
Sarah Colvil is taking charge on home turf after being appointed manager of Newcastle Building Society’s Hexham branch. Sarah, who was born and bred in Hexham, will be leading a team and developing operations across the branch’s territory.
BUS BOSS
PRO-AD GROWS
NEW EXPERTISE
Luke O’Brien (seated), Alex Ramsay, John Malcolm, Kyle Mitchell, Matthew Barron (seated), ElringKlinger (GB) managing director Iain Malcolm, Aston Barlow, and Rachael Bollands
Andrew Tyldsley has been appointed to the new role of head of commercial at Go North East, the region’s largest bus company. He will be responsible for all commercial, marketing and customer service activity at the company. He was previously commercial manager, having joined Go North East in 1995.
Regional fund management firm NEL Fund Managers has responded to demand for investments from the Finance for Business North East Growth Fund by adding experienced finance professional Chris Parker to its team. Middlesbrough-born Parker will be a first port of call for business managers seeking funding.
Morpeth-based promotional merchandise company Pro-Ad has welcomed two new members to its team. Carla Mackereth joins the company as an account manager to help look after the company’s growing customer base. Meanwhile, Laura Nowicki joins Pro-Ad as a sales administrator to process orders and ensure production runs smoothly.
YOUNG TALENT
Teesside-based engineering company, ElringKlinger (GB) has recruited young people to its Year in Industry undergraduate programme from Northumbria and Teesside universities on year-long placements to support their degrees in mechanical engineering.
PLAN A
Property consultancy GVA has expanded its planning, development and regeneration team in Newcastle with a wave of new senior level appointments. The new staff are Neil Morton (director), David Brocklehurst (associate), Nick Graham (principal) and Tom Baker (principal). All are high profile planning advisers and they bring with them vast experience gained advising house builders, local authorities, developers and landowners. They join the existing GVA planners to create a new expanded team of eight.
NEW APPRENTICE
Joshua Bartley is the latest apprentice motor vehicle technician to join the service team at Jenning’s Ford Eslington Park in Gateshead. After leaving St Leonard’s Catholic School in Durham with nine GSCEs, Joshua, 17, wanted to work towards gaining additional qualifications while gaining experience at work.
FAB FIVE
RMT Accountants & Business Advisers has added five new faces to its team. Kayleigh Grieves, Jake Armstrong, Kathryn Morris, Kelly-Ann Wilde and Ryan Thompson have joined the Gosforth-based firm in a range of roles. RMT director Maxine Pott said it was key to sustaining business growth.
Professor Liz Holey, Juliet Amos, vice-chancellor Professor Graham Henderson CBE DL, Malcolm Page, Michael Lavery
SENIOR TEAM
Teesside University’s exec team now includes Malcolm Page, deputy chief executive, Prof Liz Holey pro vice-chancellor (quality), Michael Lavery, director of external relations, and Juliet Amos, HR director.
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 59
EVENTS
Bryn Littleton, NECC
Gary Ramsay & Stuart Blackie, Offstone Publishing, Sue Coulson, NCJ Media
Steve Cram
NECC Tyne and Northumberland Annual Dinner The region’s business champions’ achievements were marked at this gala dinner at Newcastle Civic Centre, where Tim Clark, President of Emirates Airlines, was the keynote speaker, and Olympic silver medallist Steve Cram was the after-dinner speaker. The event was sponsored by Newcastle International Airport and Gateshead College and 300 guests attended.
Steve Cram, James Ramsbotham, NECC, Tim Clark, Judith Doyle, Gateshead College, David Laws NECC president, Graeme Mason, Newcastle Airport
Tim Clark, Emirates Airlines
Jeff Brown, BBC
David Laws NECC president, Tim Clark, Emirates, Kevan Jones MP
Vivien Lee & Kayren House, Properties Unique
Gina Gibbon – NECC, Richard Swart Berger Closures.
Alison Curbishley, Steve Cram
David Laws, Alan Ferguson
Sonia Ellis, Christine Nelson and Julie Watson United Carlton
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President’s Club
The NECC Christmas Exchange
President’s Club lunch, October, Wynyard Hall, sponsored by Sunderland College
Copthorne Hotel, Newcastle, 11am-2pm, Thursday 5th December 2013
FREE
A networking lunch with a Christmas theme - this is an exchange of ideas as well as an exchange of gifts for a local children’s charity. To take an exhibition stand at a cost of £50 please email events@necc.co.uk The Copthorne Hotel on Newcastle Quayside is one of the city’s best-known hotels with156 well-appointed bedrooms (all of which overlook Sponsored by
Bob Moncur, NUFC, Graeme Mason, Dave Laws, Anne Isherwood, Sunderland Collebe, James Ramsbotham, Newcastle Airport NECC, Eamonn Leavey, NECC
COPTHORNE HOTEL
NEWCASTLE
Nickie Gott, She’s Gott It! Louise Robson, Newcastle NHS Trust
Lord Howell
Lt Col P A Haigh
Chris Graham, UKTI
Charles Reynard, Eversheds
the River Tyne), a large restaurant and bar, nine function rooms and a leisure club. The hotel itself is founded on the philosophy of genuine hospitality, and takes great pride in meeting the needs of business and leisure travelers alike. For more information on any aspect of the hotel, please contact the team via events.newcastle@millenniumhotels.co.uk
Social Media and Employment Law
Chamber Awards Winners Lunch, Bistro 21
NECC Durham, 9.15am-11.30am, Thursday 30th January 2014 FREE
Geoffrey Cook and Bob Whinney – Elddis Transport receives Regional Chamber Award for Sustainability
Derwentside Homes’ Geraldine Wilcox and Keith Tallintire receive Regional Chamber Award for Commitment to People Development
Port of Tyne – Steven Harrison and John Hudson, For Regional Chamber Award for Outstanding Personal Achievement
Guardian Marine Technology’s Andrew Shaw and Paul Livingstone (in centre) receive Regional Chamber Award for Exporter of the Year
Nortech Solutions’ Bryan Bunn receives Regional Chamber Award for Most Promising New Business
Atomhawk Design’s Ron Ashtiana & Corlen Kruger (centre) receive Regional Chamber Award for Excellence in Innovation
One of the most significant developments in the workplace in the last decade has been the arrival of social networking, and the next generation of employees will never have known a world without the Internet and mobile phones. These developments present new challenges - and risks - to employers who must consider how they manage the use and misuse of social networking, particularly where the reputation of the business is affected. This event will discuss how the use of social media is best managed by a clear HR policy. It is sponsored by Croner, which is committed to helping businesses comply with the legal requirements in areas such as HR, health and safety, environmental management, trade and transport. Croner works closely with NECC to provide members with advice and guidance.
DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 61
EVENTS
COMMITTEES DEC
Middlesbrough Committee
DEC
Redcar & Cleveland Committee
03 To book, tel 0300 303 6322 email events@necc.co.uk www.necc.co.uk/events
The NECC Golf Day 2013 at Slaley Hall was sponsored by Chamber Utilities and raised vital funds for the charity Veterans at Ease
05 JAN
29
The Christmas Exchange
11.00am - 2.00pm Copthorne, Newcastle
NECC Local
5.30pm – 7pm Revolution, Newcastle
30
NECC Golf Day 2013, winning team KF Training
JAN
30
11 DEC
JAN
FREE FREE
15 JAN
17 JAN
28 BUSINESS SEMINARS
JAN
DEC
12
NETWORKING DEC
04
Social Media and Employment Law 9.15am - 11.30am NECC Durham
Access Brazil seminar
9.30-1pm Copthorne Hotel, Newcastle
JAN
31
MAR
NECC Durham AGM
MAR
NECC Northumberland AGM
12 Karen Brogden, Chamber Utilities, presents the proceeds from the day to John Taylor of Veterans at Ease
19
11.30am-2.00pm Kirkley Hall, nr. Ponteland
NECC Tyne & Wear AGM
MAR
Durham & Wearside Annual Dinner
26
11.30am-2.00pm Copthorne Hotel, Newcastle
6.30pm-0.00am Stadium of Light, Sunderland
JUN
NECC AGM
SEP
Tees Valley Annual Dinner
10 *Members rate + VAT
11.30am-2.00pm Emirates Durham Intl. Cricket Ground
MAR
27
The Chamber Utilities team
11.30am-2.00pm Riverside Stadium, Middlesbrough
25 NOV
06
10.45am-2.00pm Ramside Hall, Durham
6.30pm-0.00am Thistle Middlesbrough
Tyne & Northumberland Annual Dinner 6.30pm-0.00am Newcastle Civic Centre
FREE
Darlington Committee
FREE
4.00pm -5.30pm Housing Hartlepool, Hartlepool
8.15am -10.00am Longfield Academy, Darlington
Northumberland Committee 4.00pm – 6.00pm Venue TBC
FREE
Durham Committee
FREE
Sunderland Committee
FREE
8.30am – 10.00am Venue TBC
4.30pm – 6.00pm Venue TBC
North Tyneside Committee
8.00am – 9.30am Venue TBC
FREE
SHORT COURSES
FREE FREE FREE FREE £65*
DEC
17
AAT Finance for Non Financial Managers 9:30-4:30pm Durham
Introduction to Supervisory Skills 9:30-4:30pm Durham
£125* £125*
Book online at www.necc.co.uk email: emma.lowery@necc.co.uk call 0300 303 6322
INTERNATIONAL TRADE SHORT COURSES FEB 11 Letters of Credit & Methods of Payment FEB 27 Export Procedures & Documentation MAR 06 Import Procedures & Documentation MAR 13 Customs Procedures & Documentation (All international courses are scheduled to be at Aykley Heads, Durham, DT1 5TS, subject to change dependent on numbers)
FREE
1 day courses: £235 +VAT (for members),
£65*
email: Jacqui.tulip@necc.co.uk call 0845 076 8324
£100*
book online at: www.necc.co.uk
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Hartlepool Committee
FREE
CORPORATE & AGMS 2014
05
FREE
book online at: www.necc.co.uk
12 NECC Tees Valley AGM
8.15am -10.00am South Tees Business Centre
FREE
FREE
DEC
MAR
8.15am -10.00am Teesside University, Middlesbrough
(£285+VAT standard price)
FOUNDATION DEGREE IN LEADERSHIP AND MANAGEMENT
50% fee reduction for the Foundation Degree in Leadership and Management for new starters in February 2014. The funding is only available to employers sponsoring their employees. Employees must be registered by December 2013 to take advantage of the funding.
Email: emma.lowery@necc.co.uk
*Members rate + VAT
NECC Golf Day 2013, Slaley Hall
NFLUENC E • I
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NECC PROVIDES US WITH GREAT BUSINESS ADVICE AND THE SUPPORT TO RAISE OUR PROFILE WITHIN THE REGION AND NATIONALLY
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NIGEL COOK MANAGING DIRECTOR ELDDIS TRANSPORT LTD WINNER OF THE NORTH EAST BUSINESS AWARDS 2013 – CORPORATE RESPONSIBILITY AND ENVIRONMENT AWARD NATIONAL CHAMBER AWARDS FINALIST 2013 – THE SUSTAINABILITY AWARD
THE CHOICE OF CHAMPIONS To join the North East’s leading business membership organisation call 0300 303 6322 or visit www.necc.co.uk/join
MEMBER 2 MEMBER
Member2Member
Make more of your NECC membership with these great member offers and many more on the NECC website
www.necc.co.uk/member2member HUMAN RESOURCES CONSULTANT TAYLOR MASON HR
HR - Offer Code: 2 Let us write or update your job descriptions, your contracts of employment from shop floor level up to director level or update your policies and procedures all for a set price for NECC members.
INDEPENDENT COMMUNITY MAGAZINE PROMOTING LOACL BUSINESSES AND EDITORIALS
DARLINGTON MONTHLY LTD
15% discount for 3mths block booking for Dec, Jan & Feb. Offer Code: NECC Block book December, January and February and you will receive 15% discount. This magazine is distributed B2B in Darlington and the surrounding villages.
CORPORATE TRAVEL MANAGEMENT & PA EXECUTIVE TRAVEL CONSULTANTS
Save the date for the Conference & Hospitality Show 2014 Offer Code: CHS2014 For all travellers from the North East, we have organised free transport to and from this major event, and free entry to the event plus an after-show party. We would hate you to double book so make sure this important event is secured in your diary. Tuesday April 8, 2014 from 9:15am to 4pm BST.
RETAIL CONSULTANCY AND SUPPORT SERVICES SOLO BUSINESS SOLUTIONS
Retail Shop Fitting & Merchandising Offer Code: RSF01 Use Solo Business Solutions for a retail shop fit or refurbishment and receive five days’ complimentary merchandising service, worth £1,500.
ST CUTHBERT’S CARES FOR PEOPLE WITH LIFE LIMITING ILLNESSES ST CUTHBERT’S HOSPICE
Light up a Life 2013 This year you can light up the life of someone special by donating to St Cuthbert’s Hospice in their memory, and also mark St Cuthbert’s landmark 25th anniversary. Their name will be entered into a Book of Remembrance and dedicated at a special Light up a Life service in Durham cathedral at 7pm on Sunday 15 December.
PROVISION OF WASTE MANAGEMENT SITA UK LTD
Free Waste Audit Why not call us and arrange a free no obligation waste audit. We will Identify how much of your waste can be recycled and how much money you could save by switching to SITA UK.
PRINTING / GRAPHIC DESIGN / WEBSITE DESIGN / LARGE FORMAT STONEBROOK MEDIA LTD
Printed Christmas Cards Offer Offer Code: KS03-XMAS We all need to think about
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getting our Christmas Cards purchased ready to send out to our customers. As a special offer for NECC Members we can design, print and supply your cards with plain white envelopes at a much reduced rate.
FINDING THE RIGHT ONLINE SOLUTIONS FOR SMALL & MEDIUM BUSINESSES GALIA DIGITAL LTD
Time to Shine Online An Internet Health Check will give you an unbiased, holistic overview of your existing online presence, and suggest simple strategies to improve and build your business online. A short 2-3 page report outlines the good, the bad and the ugly, and gives you specific steps you can take to move forward. Normally £125, NECC members pay only £75 under this member offer.
DIGITAL MEDIA
WRIGHTWAY DIGITAL
Professional web design at up-to 25% off for NECC members Offer Code: NECCWEB10 As fellow NECC members, we want to give other members a bit of a head start in business. We are currently offering up-to 25% off our web design packages, Free logo design, Free branding packages and free advanced cloud based hosting.
TRAINING PROVIDER NEBOSH IOSH CIEH IEMAC & G HEALTH SAFETY & ENVIRONMENTAL
CORPORATE RISK SYSTEMS LIMITED
20% off Training Courses Offer Code: NECC M2M 20% discount to all NECC members off NEBOSH National General, NEBOSH Fire Safety, NEBOSH Environmental and NEBOSH Construction Courses
run at one of our 15 training venues nationwide.
LEADERSHIP MANAGEMENT & BUSINESS TRAINING / COACHING & CONSULTANCY RECREATE
NECC Members offer: Free one hour consultation/presentation on how a High Performance mindset can benefit your business. Half Day seminar on the benefits of advanced communication & leadership skills. Heavily focused on emotional intelligence, behavioural analysis & advanced interpersonal skills. Normally £499. Member offer 15% off. (max group size 10) Member discounts available for all consultancy, coaching and training solutions.
LAUNDRY & DRY CLEANING/ COMMERCIAL & DOMESTIC
THE LAUNDRY GALLERY
15% Dry Cleaning Discount to NECC Members NECC member 15% discount on any of our domestic dry cleaning services. Conveniently located in Hexham with free parking directly and business friendly opening hours.
FULLY REFURBISHED MODERN STYLISH HOTELS MATCHED BY SERVICE & COMMITMENTS AILANTUS HOTEL
Blue Ice Extravaganza Offer Code: Festive NECC The George Washington has a a range of celebration offerings including Christmas Party Nights, New Year’s Eve Gala, private parties and festive lunches.
Entry into the Member2Member section is not an endorsement by NECC
TAKE TWO
Double take
DEAN . TEESSIDE BUSINESS SCHOOLI
EXECUTIVE DEAN FACULTY OF BUSINESS & LAW, NORTHUMBRIA UNI
Alistair Thomson Kevin Kerrigan How long have you been in the job? I started off as an accountant and spent 25 years in large PLCs as a finance director and managing director before joining Teesside University six years ago. It was my first job in a university, indeed my first job outside the private sector. What do you love about your job? Working with students is the bit that makes working at a university a real pleasure. What are the most challenging aspects of your job? There’s always a lot to do, the sheer volume of activity is challenging in itself. Having been through that learning curve myself, I try to make sure we’re talking to businesses in terms business understands, and translate where necessary. Highlight of your career so far? The first time a student turned around to me and said, “thank you for everything you’ve done. I’d never have managed such a good result without your support.” That’s what we’re here for. Who do you admire most? People who achieve in their respective field - business, arts, sport, music, just about anything. In my business career I learned much more from businesses outside the sector I was in than from our direct competitors. What would you do if you weren’t in your current job? I’d like to think I’d be some sort of sensitive and creative musician. My friends tell me that an aspiration to be Simon Cowell might be closer to my personal skillset. How will you spend your time when you retire? I’m fortunate to enjoy my work and to be able to improve the life chances of hundreds of people every day, but if I do have to retire, I’d like to be a sensitive, creative musician. Or Simon Cowell.
How long have you been in the job? After graduating from what was Newcastle Polytechnic as a law student in 1986, I went travelling and worked in London. Then I saw an advert for a junior lecturer at the Law School, which I thought would be ideal while I worked out what I wanted to do. That was over 20 years ago. I became Dean of the Law School in 2011 and assumed the role of Executive Dean for the new faculty. What do you love about your job? I still love teaching and try to ensure that it is a significant part of my academic year. What are the most challenging aspects of your job? The size of the new faculty is itself a challenge. With over 300 staff and several thousand students it is difficult to keep abreast of everything that takes place. It has been a steep learning curve. Highlight of your career so far? When my students and I persuaded the Court of Appeal to quash the conviction of a man who had spent over six years in jail for robbery and had always protested his innocence. Who do you admire most? My mother, for so many reasons but in particular because without even knowing it, she has taught me more about justice, ethics and leadership than any professor or scholarly article ever could. What would you do if you weren’t in your current job? I wanted to be a lorry driver when I was younger. I think it was something about the freedom of the open road. I also have an interest in marketing, so I would have liked to try my hand at that. How will you spend your time when you retire? It’s too far off to plan for, but it is likely to involve the countryside and lots of books that I don’t have the time to read at the moment. DEC 2013 - JAN 2014 / CONTACT / www.necontact.co.uk / 65
GUEST COLUMNIST
Last Word
This month: Dragon’s Den entrepreneur Kirsty Henshaw
W
hile there were nearly half a million business start-ups last year, the statistics are against the entrepreneurs who take this brave step. According to latest figures, 20% of new firms will fold within the first year and 50% will have failed by the time they reach year three. For too long, entrepreneurs have been overlooked and undervalued. But those setting up SMEs are going to be the ones to rebuild the economy and that needs to be recognised and rewarded with both funding and guidance when needed. I’m a small business owner myself and I was a start-up four years ago. When I was starting, there was Business Link and quite a lot of guidance out there. There wasn’t a lot of funding, but sometimes guidance is just as, if not more important than the money side. I don’t see there’s that help available now. The UKTI is great but there’s no real, structured help for companies during their launch. And with businesses folding left, right and centre, that needs to change. The Government needs to invest more in entrepreneurs; the people who are going to rekindle the economy. It could be done in the same way as student loans, which are handed out to anyone who wants to study anything, even if it’s something that’s not likely to lead to a job. The same sort of loan should be readily available to business owners so that they can grow their company and repay their loan when their turnover reaches a certain level. Because of a lack of funding, I went to Dragon’s Den, which worked for me, but it’s not for everyone. But perhaps if there’d been more angel schemes, I would have gone down a different avenue.
It’s not all down to the Government though; we need help from banks for SMEs having cash flow difficulties. At the moment, banks make it very hard when you are starting out and don’t have a proven track record to get any help whatsoever. Schemes such as invoice discounting, where banks advance the invoice value, are being offered by some banks, but that needs to happen across the board. Something else which would help is to offer basic skills courses for free, or at low cost, to entrepreneurs because obviously you can hire an accountant but that costs money. If you’re able to do your own accounts, you can save vital pounds while you’re starting up. Or it could be you need a marketing course; there are lots of things you can do yourself with just a bit of advice. Entrepreneurs who have made it should also be incentivised to help those who are just starting out, so business start-ups can be teamed up with a mentor from their industry. It’s all well and good being helped by a business adviser, but if they haven’t been in business themselves, they don’t know what you’re going through. It’s also about creating realistic expectations, because programmes like
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The Apprentice portray business in a very glamorous way; that you put on your heels and designer dress and head into the boardroom, you drive nice cars and eat in fancy restaurants. But that’s not what it’s like at all. I didn’t pay myself for a year, I had to do a bar job at night and I was still in rented accommodation while I started up my business. If we’re honest about what entrepreneurship is about, we can focus the funding and help on those who are prepared for it. By offering those who know exactly what they’re getting into but still want to go for it that help, they’ll return that favour by providing jobs to rebuild and grow the economy. That’s a return on investment that would impress even the toughest members of the panel from Dragon’s Den. Kirsty Henshaw is the founder of Worthenshaws, which has been rebranded Kirsty’s. She gained funding for her healthy range of frozen desserts and ready meals from Dragon’s Den, and has recently bought out Duncan Bannatyne and Peter Jones. Kirsty’s products are stocked in Sainsbury’s, Waitrose, Boots, Budgens and Ocado. Kirsty Henshaw was keynote speaker at the IF (Inspiring Females) Conference in November.
I DON’T SEE BORDERS I SEE OPPORTUNITIES. AS A CHAMBER MEMBER I’M WELL CONNECTED. IF IT’S NEW CUSTOMERS YOU’RE AFTER OR THE RIGHT ADVICE TO KEEP YOUR BUSINESS GROWING, BELONGING TO YOUR LOCAL ACCREDITED CHAMBER OF COMMERCE MEANS YOU ARE ALWAYS WELL CONNECTED. VISIT WWW.NECC.CO.UK TO SEE HOW WE CAN SUPPORT YOUR BUSINESS. #JOINYOURCHAMBER
THE WORLD IS ON YOUR DOORSTEP CONNECTING YOUR BUSINESS, LOCALLY AND GLOBALLY
2013
NORTH EAST BUSINESS OF THE YEAR
IT’S TIME TO THINK ABOUT THE PORT OF TYNE. Brands such as Argos, Nissan, Tetley and JML have all discovered that using the Port of Tyne is good for business. North East companies can take advantage of having one of the UK’s best logistics providers right on their doorstep, with state-of-the-art high bay warehousing, a new £6m gantry crane and a modern, green distribution fleet. Using the
Port of Tyne provides complete flexibility and reliability as well as generating cost savings and reducing the environmental impact if you are bringing goods in and out of the country.
FIND OUT MORE AT WWW.PORTOFTYNE.CO.UK